0
The retail market in Sweden          Steady growth and demand for new conceptsJanuary 20, 2011January 20, 2011            ...
Dynamic market with openness to new          concepts               9.4 million people with high purchasing power         ...
Largest market in Northern Europe              Gateway and regional bridgehead to              attractive Scandinavian mar...
Strong and stable economy             GDP growth                                                                          ...
Economic overview 2010                   Population 9.4 million                   GDP per capita 30,000 Euro              ...
People are wealthy …                                                    Sweden                                            ...
Strong purchasing power in the region          GDP per capita in PPS           200           190           180           1...
Swedish consumers - high spenders               High proportion of income spent on retail.               Private consumpti...
Strong retail growth          2001-2007, percentage                    Source: Economist Intelligence unit 2008January 20,...
Retail sales growth 2006-2009                   20,00%                   15,00%                                           ...
Retail market overveiw 2009                                                                        14%                   R...
Strong growth in apparel segment                   86 billion Euro                   Sales growth 75% during the          ...
10 largest clothing retailers in Sweden                                                  Sales MSEK    ChangeRetailers    ...
Of Swedish originSweden is well known for it’s fashion wonder and sucessful retailersexpanding internationally
A valued test market             “Swedish consumers are the toughest in             Europe and perhaps the world. They’re ...
Increasing inflow of foreign retail chains                         Fashion, Spain                                         ...
Increasing inflow of foreign retail chains                                          Home funrnishing, Denmark             ...
Supply - Expansion of retail space             Expansion and renovation projects are ongoing –             1 million sqm. ...
Rents          Trends                   Weaker retailer demand, increased vacancies                   Increase in supply o...
Rent levels and consumption in larger          EU cities                            City                       Consumption...
Franchising in Sweden is growing    Sales SEK Billion                          No of Franchisees   No of Employees       S...
Strong growth for distance selling          Total sales: 8,5 billion euro.          Average growth: 17,4 percent          ...
Strong growth in E-commerce and mail order       E-commerce sales up       +15% 2009 in Sweden       2,2 billion EUR 4% of...
Price and convenience drive distance selling                                  Easier             Less expensive       (22 ...
Advanced IT infrastructure                                                       Internet users                   1.     S...
Shopping tourism increasesGenerates significant retail sales All time high, SEK 80 billion (EUR 8 billion) Since 2005 the ...
Natural logistics baseJanuary 20, 2011               27   www.investsweden.se
National Investment Promotion Agency.                                                          We help companies        Co...
January 20, 2011   29   www.investsweden.se
Upcoming SlideShare
Loading in...5
×

Retail 2010 nov

1,620

Published on

A presentation about the Swedish Retail market by Invest Sweden.

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,620
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
25
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Retail 2010 nov"

  1. 1. The retail market in Sweden Steady growth and demand for new conceptsJanuary 20, 2011January 20, 2011 1 www.isa.se www.investsweden.se
  2. 2. Dynamic market with openness to new concepts 9.4 million people with high purchasing power Retail growth market –among the highest retail growth in Europe, fuelled by GDP growth and steady population growth. Stable ecnomic situation Demand and openness for international retail brands – both from the consumers and property owners. Good supply of retail space and professional property owners Ideal test market – Demanding consumers, early adopters and trend setters Franchising well established – dominated by domestic concepts, ample of opportunities for international franchisors. Record turnover growth. Strong growth in E-commerce – two-thirds of Swede’s shop from home at least once a year. Easy to do business – smooth procedures, transparent, great business environment.January 20, 2011 2 www.investsweden.se
  3. 3. Largest market in Northern Europe Gateway and regional bridgehead to attractive Scandinavian markets. Sweden 9.4 million consumers Scandinavian countries 25,500 million Northern Europe 100 million The Scandinavian GDP is USD 1,440 billion, which makes it the 10th largest economy in the world Homogeneous market, native speakers in the whole region Preferred location for global HQ’s Large inflow of foreign investments Long history of international trade – large exportersJanuary 20, 2011 3 www.investsweden.se
  4. 4. Strong and stable economy GDP growth Inflation rate 1997–2011, average annual change, percent 1997-2011, annual average, percent Spain 2.7 Netherlands 2.1 Finland 2.7 Italy 2.1 Norway 2 Sweden 2.4 Great Britain 1.9 Great Britain 2.1 Denmark 1.9 Netherlands 2.1 Belgium 1.8 Austria 2 Sweden 1.7 Norway 1.9 Finland 1.7 France 1.8 Austria 1.6 Belgium 1.8 France 1.6 Denmark 1.3 Germany 1.4 Source: National Institute of Economic Research Eurostat; OECD, 2008 Source: National Institute of Economic Research Eurostat; OECD, 2008 (Figures for 2008 are preliminary)January 20, 2011 4 www.investsweden.se
  5. 5. Economic overview 2010 Population 9.4 million GDP per capita 30,000 Euro GDP growth 2010 +4.3% Disposable incomes 19,400 Euro +3.6% Inflation 3.4% Unemployment rate 8% Repro rate 1% Population density 22 per sq. km Currency SEK 100 = €10.7January 20, 2011 5 www.investsweden.se
  6. 6. People are wealthy … Sweden GDP 280,983 billion EUR 30,000 euro per capita Denmark GDP 163,677 billion EUR 29,700 EUR per capita Finland GDP 153,612 billion EUR 28,900 euro per capita Norway GDP 231,736 billion EUR GDP = Gross Domestic product 2008 47,700 EUR per capita Source: Nordic Statistical Yearbook 2009January 20, 2011 6 www.investsweden.se
  7. 7. Strong purchasing power in the region GDP per capita in PPS 200 190 180 170 160 2007 150 2008 2009 140 130 120 110 100 Finland Denmark Iceland Sweden Norway Sourc: Eurostat EU-27 average=100January 20, 2011 7 www.investsweden.se
  8. 8. Swedish consumers - high spenders High proportion of income spent on retail. Private consumption growth stronger than any other European country. Large middle income segment with high disposable incomes. Openness to new international concepts and brands. Well-travelled consumers, always first with the latest, values quality, design and competetive prices. Acitvity-loving consumers – outdoor, home improvement, technology savvy, shopping is a spare time activity itself. World’s most advanced internet users – most buying decisions are taken online. Four distinct seasons creates demand for wide range of productsJanuary 20, 2011 8 www.investsweden.se
  9. 9. Strong retail growth 2001-2007, percentage Source: Economist Intelligence unit 2008January 20, 2011 9 www.investsweden.se
  10. 10. Retail sales growth 2006-2009 20,00% 15,00% USA 10,00% Denmark EU (27) 5,00% Finland Norway 0,00% Sweden 2006 2007 2008 2009 -5,00% -10,00%January 20, 2011 10 www.investsweden.se
  11. 11. Retail market overveiw 2009 14% Retail sales 50 billion EUR (2009) Growth 3.1% 17% Retail sales 2010 Q1-Q3 strong: +3.7% 50% Strong positive annual growth for 13 year, average 4% per year. 50% of total household consumption 19% Retail sales growth exceeds other EU countries Daily goods Ideal test market – demanding consumers Home/furnishing Fashion Leisure/Entertainment Source: SCBJanuary 20, 2011 11 www.investsweden.se
  12. 12. Strong growth in apparel segment 86 billion Euro Sales growth 75% during the last 10 years Women’s fashion 52% of total value - most lucrative € 11million 13% € 6 million 71% Source: SCBJanuary 20, 2011 12 www.investsweden.se
  13. 13. 10 largest clothing retailers in Sweden Sales MSEK ChangeRetailers Stores 2009 %H&M 161 7,881 5.9Lindex 203 4,200 2.4Varner Retail (Dressman, Cubus, Carlings, BikBok) 376 3,387 8.8Kappahl 144 3,223 1.4RNB Retail and Brands (Brothers & Sisters, Polarn o Pyret, NK, JC) 351 3.168 -8.7Redcats Nordic (catalouge/distance selling, Ellos, La Redoute, etc) 3 3,000 0.0MQ 102 1,730 -8.2Gina Tricot 93 1,605 16.5Bestsellers (Vero Moda, Vila, etc) 231 1,390 7.0Indiska 63 804 3.1Total 10 largest 1,727 30,390 2.5
  14. 14. Of Swedish originSweden is well known for it’s fashion wonder and sucessful retailersexpanding internationally
  15. 15. A valued test market “Swedish consumers are the toughest in Europe and perhaps the world. They’re used to high standards and have high expectations. If you can win over Swedish consumers then you stand a good chance of being able to do so anywhere. “ Shaun Herbert, Managing director of advertising agency DDB Stockholm and in charge of the McDonald’s rebranding program "Sweden is a technology savvy market. Swedes tend to be on the leading edge of adopting new technologies. We want to continue to drive that forward and use Sweden as a test market.” Steve Ballmer, CEO MicrosoftJanuary 20, 2011 15 www.investsweden.se
  16. 16. Increasing inflow of foreign retail chains Fashion, Spain Fashion, Spain Fashion, Denmark Fashion, Spain Fashion, UK Footware, Germany Fashion, Norway Fashion, Spain Fashion, US Fashion, Norway Fashion, US Fashion, GermanyJanuary 20, 2011 16 www.investsweden.se
  17. 17. Increasing inflow of foreign retail chains Home funrnishing, Denmark Eyeware, UK Furnitures, DK Toys, US Building & Construction, Germany Toys, US Building & Construction, Finland Food, Norway Home electonics, Germany Food, Germany Home electronics, Norway Telecommunications, UKJanuary 20, 2011 17 www.investsweden.se
  18. 18. Supply - Expansion of retail space Expansion and renovation projects are ongoing – 1 million sqm. of retail floor space is planned until 2012. Slower paste in 2009 Increase in international retail space ownership. Mall of Scandinavia Emporium 100,000 sqm, Solna. Unibail Rodamco (UK) 65,000 sqm, Malmö. Steen & Ström (Norway)January 20, 2011 18 www.investsweden.se January 20, 2011
  19. 19. Rents Trends Weaker retailer demand, increased vacancies Increase in supply of retail space Prime location rents decreased in 2009 with approx. 9% Terms Standard lease terms 3-5 years in shopping centers and high street, 7-10 in retail parks. Retail rents often partly based on turnover Compared to other EU countries tenants have a strong legal position.January 20, 2011 19 www.investsweden.se
  20. 20. Rent levels and consumption in larger EU cities City Consumption Non- Quarter 1 2009 food in city area Prime High street rent level/sqm/year 1 London € 6,174 million € 6,440 2 Paris € 5,879 million € 7,500 3 Rome € 5,762 million € 6,500 4 Madrid € 5,377 million € 2,640 5 Berlin € 5,080 million € 2,640 24 Copenhagen € 2,332 million € 2,000 26 Stockholm € 2,251 million € 1,230 Source: Jones Lang LaSalle and ExperianJanuary 20, 2011 20 www.investsweden.se
  21. 21. Franchising in Sweden is growing Sales SEK Billion No of Franchisees No of Employees Source: HUI, Swedish Retail InstituteJanuary 20, 2011 21 www.investsweden.se
  22. 22. Strong growth for distance selling Total sales: 8,5 billion euro. Average growth: 17,4 percent 2,11 billion euro 2,65 billion euro +6,3 % * +12 % * 49 billion euro 60 billion euro share: 4,5 % ** share: 4,2 % ** 2,32 billion euro 1,44 billion euro +14,1 % * +49,2 % * 44 billion euro 36 billion euro share: 5,2 % ** share: 4,0 % ** * = 2009 compared to 2008 Source: HUI ** = Proportion of total retail tradeJanuary 20, 2011 22 www.investsweden.se
  23. 23. Strong growth in E-commerce and mail order E-commerce sales up +15% 2009 in Sweden 2,2 billion EUR 4% of the total retail salesJanuary 20, 2011 23 www.investsweden.se
  24. 24. Price and convenience drive distance selling Easier Less expensive (22 %) More convenient Greater selection Saves time (25 %) (21 %) (18 %) (10 %) Don’t know (3 %) Primary reason to shop from home Most popular products 46 % 39 % 24 % 1. Clothing 2. Home electronics 3. BooksJanuary 20, 2011 24 www.investsweden.se
  25. 25. Advanced IT infrastructure Internet users 1. Sweden 1. Iceland 1. Iceland 2. US 2. Sweden 2. Sweden 3. Norway 3. Norway 3. Denmark 4. Denmark 4. Denmark 4. Australia 5. Switzerland 5. Luxembourg 5. Norway 6. Netherlands 6. 6.South Korea Singapore 7. Canada 7. 7.Finland Canada 8. Iceland 8. 8.Japan Australia 9. 9.US Japan 9. Finland 10. 10. Hong Kong Canada 10. Australia Source: IMD World Competitiveness yearbok 2010January 20, 2011 25 www.investsweden.se
  26. 26. Shopping tourism increasesGenerates significant retail sales All time high, SEK 80 billion (EUR 8 billion) Since 2005 the retail sales to tourists has increased with 100% 31% of the total retail sales from tourism shopping (50%) from international visitors. International tourism to Sweden increasing more than to the rest of the world, +5% Cross-boarder shopping magnet
  27. 27. Natural logistics baseJanuary 20, 2011 27 www.investsweden.se
  28. 28. National Investment Promotion Agency. We help companies Companies planning to establish operations or worldwide to connect with investing in Sweden can, free of charge, obtain the best business information and assistance from ISA and its opportunities in Sweden regional and international network. 80 professionals in Sweden, US, China, Japan and India has facilitated more than 1,000 investments during the last five years. Establishment support and practical advice when setting up a business in Sweden. Information on business opportunities in Sweden Matchmaking with Swedish companies in key sectors. Location advice and contacts with business service providers. www.investsweden.seJanuary 20, 2011 28 www.investsweden.se
  29. 29. January 20, 2011 29 www.investsweden.se
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×