Retail Guide 2018/2019
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RETAIL GUIDE SWEDEN 2018 /2019 2018/2019 PUBLISHED IN OCTOBER 2018 BY BUSINESS SWEDEN | INVEST STOCKHOLM | STOCKHOLM CITY CENTER PARTNERSHIP BUSINESS REGION GÖTEBORG | INVEST IN SKÅNE STOCKHOLM | GOTHENBURG | MALMÖ 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 1 HEJ! We are glad that you picked up this publication, as it means you are interested in learning more about retail opportunities in Sweden. The purpose of this guide is to give an overview and assist you in evaluating an entry into this dynamic market. RETAIL GUIDE SWEDEN 2018/2019 CONTENT SWEDEN 4 SWEDEN STANDS OUT Welcome to 6 THE NORDICS – TOP OF LEAGE OUTPERFORMING EUROPE 8 SWEDEN AT A GLANCE 10 THE SWEDISH RETAIL MARKET 14 THE SWEDISH CONSUMER 16 LARGE INCREASE IN SHOPPING TOURISM 18 FOODIE NATION WITH WORLD-CLASS CUISINE 20 GREAT SUPPLY OF RETAIL SPACE 22 EXCELLENT LOGISTICS HUB FOR NORTHERN EUROPE 24 E-COMMERCE SHOWS IMPRESSIVE GROWTH STOCKHOLM SWED EN 26 STOCKHOLM OVERVIEW 30 SHOPPING DESTINATIONS IN THE REGION 32 SHOPPING CENTRES AND DEPARTMENT STORES 34 CITY CENTRE KEY RETAIL AREAS 36 RETAIL DEVELOPMENT GOTHENBURG 40 GOTHENBURG OVERVIEW 44 SHOPPING DESTINATIONS IN THE REGION 46 CITY CENTRE KEY RETAIL AREAS 48 RETAIL DEVELOPMENT MALMÖ 50 MALMÖ OVERVIEW 54 SHOPPING DESTINATIONS IN THE REGION 56 CITY CENTRE KEY RETAIL AREAS 58 RETAIL DEVELOPMENT LET US ASSIST YOU 62 BRINGING BUSINESS TO SWEDEN AN A-Z GUIDE 64 ESTABLISHMENT FACTS 66 CONTACT INFORMATION Photo: Dino Soldin, Hufvudstaden & Vasakronan 2 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 3 SWEDEN Sweden stands out – outperforming the rest of Europe in many key areas such as economy and competitiveness. Södra Förstadsgatan, Malmö Photo: Peter Westrup, Vasakronan 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 procedures, openness to international ownership and a stable economy. 11 REASONS TO TAKE A CLOSER LOOK AT SWEDEN • Top performing economy in Europe • Sophisticated consumers, Sweden stands out and outperforms the rest of Europe in – and provides hard facts and information about the • Largest market in the Nordic region early adopters many key areas such as economy and competitiveness. market, demand and supply. It has been developed in joint • Strong retail sales growth for • Strong appetite for new Equally important, it is a nation of high-income earn- collaboration between the national trade and investment international retail brands ers with a large share of spending on retail and food & council Business Sweden, the regional investment promo- 21 consecutive years • Well established test market beverage. Swedes are also recognised as widely traveled tion agencies of Stockholm, Gothenburg and Malmö and • Wealthy consumers with high trendsetters who are innately curious about new inter- the Stockholm City Centre Partnership. Among the part- purchasing power • Availability of attractive retail space national brands and products. And since the purchasing ners are the Stockholm Property Association, property • Population growth and a large, power is one of the highest in Europe, they have ever owners and consultants. well-educated middle class • Transparent market and increasing means to satisfy that curiosity. Many new inter- • Recognised as a trendsetting easy to do business national brands have already discovered the potential but Please contact us for advice, networking contacts and progressive country there is room for many more. The share of international and establishment support – free of charge and in full retailers in Sweden is low compared to markets in the rest confidentiality – to assist you further in evaluating the of Europe. opportunities and setting up a successful business in Sweden. Please see contact details at the back. This guide charts retail opportunities in Sweden’s three largest city regions – Stockholm, Gothenburg and Malmö 4 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 5 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 the Nordic countries – Sweden, Denmark, Finland and Norway – make up the 11th largest economy in SWEDEN the world, consisting of 26 million inhabitants. SEK 820 BILLION RETAIL TURNOVER 10.1 MILLION INHABITANTS THE NORDIC MODEL Forbes Magazine ranked 81,000 SEK/CAPITA – ONE REGION, FOUR COUNTRIES Sweden fourth in “The Best Some consider them small nations up north but in fact, the NORWAY HELSINKI Nordics are continuing to outperform the rest of Europe, Countries For Business showing higher scores on practically every chart and SEK 550 BILLION 2018”, a ranking based RETAIL TURNOVER ranking one cares to construct. OSLO on factors such as prop- 5.3 MILLION INHABITANTS 103,000 SEK/CAPITA The four countries are tied together historically through erty rights, innovation, STOCKHOLM collaboration and many similarities – political visions, taxes, technology, corrup- social security and cultural traditions – even language tion, freedom, red tape, (except for Finnish). This has been internationally labelled as the “Nordic Model” – a hybrid system with its mix of and investor protection. social welfare benefits, openness and high-tech capitalism, Denmark, Finland and which has made the region a highly attractive place for Norway also ranked in the DENMARK FINLAND both living and doing business. This is a region characterised top 15. SEK 450 BILLION SEK 390 BILLION by security, transparency and lack of corruption. RETAIL TURNOVER RETAIL TURNOVER COPENHAGEN 5.8 MILLION INHABITANTS 5.5 MILLION INHABITANTS HIGH PERFORMERS IN AN 77,000 SEK/CAPITA 71,000 SEK/CAPITA INTERNATIONAL PERSPECTIVE The Nordic economies, and especially Sweden and Norway, have shown strong development in recent years. Source: Eurostat, 2018. The region has stood out from the rest of the developed Including e-commerce & automotive fuel. world with its strong macroeconomic fundamentals. PRICE LEVELS VS. GDP PER CAPITA (INDEX 2017) Low sovereign debt, transparent economies, a well- EUROPEAN RANKING consolidated banking system and consumers with sound EU28=100 Price level GDP per capita personal finances, produce a combination of stability and growth potential. Switzerland 159 158 GDP DEVELOPMENT AND FORECAST, % Norway 142,7 150 COMPARING WEALTH WITH PRICE LEVELS Denmark 141,5 125 Swedish consumers have the second highest GDP per PURCHASING POWER PER CAPITA capita in the Nordics and 24 per cent higher than the 2.9 SWEDEN 125,5 122 NORDIC CAPITALS, 2018 2.5 2.5 2.7 European average, yet prices are not as high. While 2.2 Purchasing power, Price level, Earning level, City rank out 1.9 2.0 1.8 1.9 2.0 1.9 Iceland 166 130 Norway has a GDP significantly higher than the rest of 1.6 index gross incl rent index gross of 77 cities Europe, largely due to its abundance of oil, it is also one UK 116,6 105 of the most expensive countries to live in. Prices on goods Finland 122,2 109 STOCKHOLM 96.4 79.8 85.8 22 in Norway are 52 per cent higher than the EU average. Norway Denmark Finland SWEDEN Luxembourg 126,9 253 Oslo 93.4 96.9 100.6 27 Conversely, the Norwegians flock to Sweden to shop. Ireland 125,4 184 Copenhagen 95.5 94.4 101.3 30 2017 2018 (f) 2019 (f) Austria 108,3 128 Helsinki 82 84.1 75.2 31 Source: National Institute of Economic Research Source: Eurostat, 2018 *New York= Index 100. The price level rankings reveal the relative cost of goods and services worldwide. Source: UBS, 2018 6 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 1 Swedish krona, SEK = $ 0.117 and € 0.098 (average Q1–Q3 2018) 7 SWEDEN AT A GLANCE Kiruna KEY FACTS SWEDEN Despite the relatively small population, Sweden consistently ranks as one of the most competitive, productive and globalised countries in the world. Population 2018, million 10.1 GDP growth 2017, % 2.4 Luleå HIGHLY COMPETITIVE AND PROGRESSIVE NATION GROWING POPULATION GDP per capita 2017 SEK 454,375 The Swedish business community continues to demon- Sweden’s population is 10.0 million and the country Inflation rate 2017, % 1.9 strate the ability to take on new ideas and to innovate, has enjoyed steady population growth over the past 22 Retail sales growth 2017, % 2.1 adapt to changing business conditions and compete in years, especially in urban areas, due to net immigration, Skellefteå an international setting. The fact is that Sweden is home increasing birth rates and lower mortality. The trend is only Retail sales growth 2018 (f), % 2.5 to some of the most respected and well-known brands in expected to continue. The majority of the population lives Unemployment rate, % 6.7 the world, including Volvo, Electrolux, Ericsson and H&M. in the middle and southern parts where the largest cities Umeå Disposable income per capita 2017 SEK 260,862 Retail giant IKEA was founded in Sweden in 1943 by then – Stockholm, Gothenburg and Malmö – are situated. The 17-year-old Ingvar Kamprad. It is also the birthplace of levels of immigration mean that the population is highly Retail sales per capita SEK 75,000 innovative start-ups that have achieved global success, diverse, with people from many different cultures. Östersund Corporate tax rate 22% such as Skype, Spotify and Klarna. Swedish krona, SEK/Euro (average 2017) 9.6326 WEALTHY MIDDLE CLASS WITH ONE OF THE HIGHEST Further, Sweden has the largest population and the LEVELS OF PURCHASING POWERS IN EUROPE Sundsvall Swedish krona, SEK/$ (average 2017) 8.538 largest retail market, and receives as much foreign direct Disposable income and private consumption growth are investment as the Nordic and Baltic countries together.