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WELCOME TO SWEDEN Content WE ARE GLAD that you picked up this publication, since it means you SWEDEN are interested in learning more about retail opportunities in Sweden. 4 THE NORDICS The purpose of this guide is to give an overview and assist you in 6 SWEDEN OVERVIEW evaluating an entry into this dynamic market. 10 THE SWEDISH RETAIL MARKET Sweden stands out and outperforms the rest of Europe in many 13 THE SWEDISH CONSUMER key areas such as economy and competitiveness. Equally important, 14 SHOPPING TOURISM we are a nation of high-income earners with a large share of spend- 16 FOODIE NATION ing on retail and food & beverage. Swedes are also recognised as 18 GREAT SUPPLY OF RETAIL SPACE widely travelled trendsetters who are innately curious about new 19 EXCELLENT LOGISTICS HUB international brands and products.And since the purchasing power 20 E-COMMERCE IN SWEDEN 22 ESTABLISHMENT FACTS is one of the highest in Europe, they have ever increasing means to 24 A-Z GUIDE TO SWEDEN satisfy that curiosity. Many new international brands have already discovered the potential but there is room for many more. The share of international retailers in Sweden is low compared to markets in STOCKHOLM the rest of Europe. 11 REASONS TO TAKE A 26 STOCKHOLM OVERVIEW 30 LARGEST SHOPPING DESTINATIONS CLOSER LOOK AT SWEDEN 32 SHOPPING CENTRES 34 KEY RETAIL AREAS CITY CENTRE • Top performing economy in Europe 36 RETAIL DEVELOPMENT • Largest market in the Nordic region • Strong retail sales growth for 20 consecutive years • Wealthy consumers with high purchasing power Sweden stands out – GOTHENBURG Luts'Luts'kk • P opulation growth and a large, well-educated middle class Rivne 38 GOTHENBURG OVERVIEW outperforming the rest of Europe 42 LARGEST SHOPPING DESTINATIONS • Recognised as a trendsetting and progressive country L'viL'vivv Ternopiernopill 44 KEY RETAIL AREAS CITY CENTRE • Sophisticated consumers, early adopters in many key areas such as 46 RETAIL DEVELOPMENT • Strong appetite for new international retail brands ChernivtsChernivtsii economy and competitiveness. • Well established test market MALMÖ • Availability of attractive retail space 48 MALMÖ OVERVIEW • Transparent market and easy to do business 52 LARGEST SHOPPING DESTINATIONS This guide charts retail opportunities in Sweden’s three largest city 54 KEY SHOPPING STREETS CITY CENTRE regions – Stockholm, Gothenburg and Malmö – and provides hard 56 RETAIL DEVELOPMENT facts and information about the market, demand and supply. It has been developed in joint collaboration between the national trade and investment council Business Sweden, the regional investment promo- Let us assist you tion agencies of Stockholm, Gothenburg and Malmö and the Stock- 59 CONTACT INFORMATION holm City Center Partnership. Among the partners are the Stockholm Property Association, property owners and consultants. Please contact us for advice, networking contacts and establish- ment support – free of charge and in full confidentiality – to assist you further in evaluating the opportunities and setting up a success- ful business in Sweden. Please see contact details at the back. 2 3 THE NORDICS TOP OF LEAGUE OUTPERFORMING EUROPE Sweden is the very epicentre of the Nordic region, being the largest market, financial centre and hub for business in the region. Together NORWAY FINLAND the Nordic countries – Sweden, Denmark, Finland and Norway – make up SEK 445 billion the 11th largest economy in the world, consisting of 26 million inhabitants. Retail turnover SEK 374 billion 5.3 million Retail turnover inhabitants 5.5 million 83,962 SEK/capita inhabitants The Nordic model – one region, four countries Comparing wealth with price levels 68,000 SEK/capita Some consider them small nations up north but in Norway stands out with a GDP significantly higher fact, the Nordics are continuing to outperform the rest than the rest of the Nordics and Europe, largely due to of Europe, showing higher scores on practically every Norway’s abundance of oil. But one should also take Finland chart and ranking one cares to construct. into consideration that Norway is one of the most The four countries are tied together historically expensive countries to live in, with 52 percent higher through collaboration and many similarities – political prices on goods than the EU average. The Norwegians visions, social security and cultural traditions – even actually flock to Sweden to shop. Swedish consumers language (except for Finnish). This has been interna- have the second highest GDP per capita in the Nordics tionally labelled as the “Nordic Model” – a hybrid and 24 percent higher than the European average, yet system with its mix of social welfare benefits, open- prices are not as high. ness and high-tech capitalism, which has made the Helsinki region a highly attractive place for both living and Norway doing business. Add to that security, transparency Sweden Forbes recently named Oslo Stockholm and lack of corruption. Sweden as the world's best SWEDEN High performers in an international perspective country for doing business. The Nordic economies, and especially Sweden and SEK 750 billion Norway, have shown strong development in recent Denmark, Finland and Norway DENMARK Retail turnover years. The region has stood out from the rest of the 10.0 million developed world with its strong macroeconomic also ranked in the top 10. inhabitants fundamentals. Low sovereign debt, transparent -Forbes Best Countries for SEK 384 billion 75,000 SEK/capita economies, a well-consolidated banking system and Retail turnover Business 2017 5.7 million consumers with sound personal finances, produce a Denmark Copenhagen combination of stability and growth potential. inhabitants 67,368 SEK/capita PRIVATE CONSUMPTION AND GDP DEVELOPMENT RETAIL DEVELOPMENT 2017 (F), % AND FORECAST, % PRICE LEVELS VS. GDP PER CAPITA - EUROPEAN RANKING PURCHASING POWER PER CAPITA 6.2 (Index 2016) Nordic capitals, 2015 5.8 EU-28=100 Price level GDP per capita Purchasing 4.7 power Switzerland 170 159 Net annual Inhabitants income Price levels incl. rent* 3.2 3.2 2.9 Iceland 151 129 2.5 2.5 2.3 2.3 2.3 2.4 2.2 Stockholm 924,000 79.4 62.8 1.9 Norway 149 149 1.6 1.7 1.7 1.1 Oslo 659,000 81.7 79.9 1.1 Denmark 139 125 0.5 Copenhagen 583,000 59.3 74.3 Luxembourg 138 267 Sweden Norway Denmark Finland Sweden Norway Denmark Finland Helsinki 628,000 75.9 63.2 Sweden 133 124 Ireland 126 177 *New York = Index 100, The price level rankings reveal the relative Private consumption 2016 cost of goods and services worldwide. Source: Gfk, 2017 Source: HUI / SCB/ SEB, 2017 Retail turnover 2017 Finland 123 109 Source: UBS, 2015 2018 (f) UK 122 118 Austria 111 126 Source: Eurostat, 2016 4 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 5 Photo: Marcus Ohlsson/ LUNDLUND Ohlsson/ Marcus Photo: SWEDEN STANDS OUT International companies are attracted to Sweden for numerous reasons. The country is a global leader of innovation with a highly skilled labour force, sophisticated consumers, smooth business When it comes to style and fashion, Nordiska Kompaniet is one of Sweden’s leading department stores. When it was founded back in 1902, the ambition was already clear. The department store procedures, openness to international ownership was to be a commercial and cultural theater – a stage for contemporary life. This fall, Nordiska Kompaniet takes a closer look at the part technology plays within fashion and a stable economy. LUNDLUND Ohlsson/ Marcus Photo: and beauty. In the exhibition Artificial Icons, the department store brings a few of history’s most important garments and accessories into the future by recreating them with the help of 3D-printers. 6 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 7 SWEDEN’S LARGEST Population Growth from CITY REGIONS 2016 2015, % 1 Stockholm County 2,269,060 1.7% TOP 10 MOST COMPETITIVE WORLD ECONOMIES 2 Göteborg (greater region) 997,416 1.5% Despite the relatively small 1 Switzerland 3 Malmö (greater region) 707,788 1.8% population, Sweden consistently Kiruna ranks as one of the most 2 United States 4 Uppsala 214,559 2.1% 3 Singapore competitive, productive and 5 Linköping 155,817 1.9% globalised countries in the world. 4 Netherlands 5 Germany 6 Västerås 147,420 1.5% 6 Hong Kong SAR 7 Örebro 146,631 1.7% 7 Sweden Highly competitive and progressive nation 8 United Kingdom 8 Helsingborg 140,547 1.8% The Swedish business community continues to 9 Japan demonstrate the ability to take on new ideas and to 9 Norrköping 139,363 1.7% 10 Finland innovate, adapt to changing business conditions and Luleå 10 Jönköping 135,297 1.5% compete in an international setting. The fact is that Source: The global competitiveness report 2017 Sweden is home to some of the most respected and Source: SCB, 2017 well-known brands in the world, including Volvo, Electrolux, Ericsson and H&M. Retail giant IKEA was founded in Sweden in 1943 by then 17-year-old Ingvar DEMOGRAPHY – AGE STRUCTURE, 2016, % Kamprad. It is also the birthplace of innovative start- Skellefteå Sweden and the three largest city regions ups that have achieved global success, such as Skype, SWEDEN IS IN GOOD SWEDEN STOCKHOLM Spotify and Klarna. FINANCIAL SHAPE Sweden has the largest population and the largest • Public finances are balanced Umeå retail market, and receives as much foreign direct • GDP growth is solid 20% 21% 16% 22% investment as the Nordic and Baltic countries togeth- • Employment levels increasing er. Of all the Nordic countries, Sweden has the highest • Interest rate low 9% level of retail attractiveness when it comes to estab- Östersund 8% lishing new business ventures, and international retail- • Consumer confidence high 24% ers continue to selectively expand in the Nordic region • Purchasing power high 25% at a slightly faster rate than in Europe’s key cities at an • Retail sales growing 26% 30% aggregated level.
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