The Ikea-effect has a great impact on the retail trade in Sweden, more than anything else.
The two cities where Ikea has established stores and other commerce in recent years were those where retail sales grew the most in 2014.
Västerås and Haparanda has seen it before. Borlänge and Uddevalla got both a new Ikea store with adjacent retail in 2013 – and the effect in 2014 came in full in 2014. Borlänge increased the most with a 25 percent growth for consumer durables.
It’s shown with the new figures from the compilation of the “Handeln i Sverige” (which is free for download here} of Swedish retail development.
Consumer durables grew strongly overall in Sweden in 2014, which is a sign of stronger economic activity – at the same time the compilation shows how different regions are affected by changes in buying patterns, population and retail establishments.
Out of Sweden’s three largest cities are Stockholm and Malmö increasing most in retail sales, while it has been unusually weak development in Gothenburg. According to HUI Research it depends on a neglected trade development. Effects of plans including Kållered and Sisjön, as well as redevelopment of the town center may, however, be felt in a few years.
Kållered is another Ikea-project where a new department store will be replace the old and have a mall next to it. And in Umeå, Ikea is creating a brand new retail park opening next spring.
Lessons from Borlänge and other cities are that neighbor municipalities will lose most.
It is also clear what kind of municipalities that attracts large numbers of visitors in relation to its size. It is mainly Haparanda, Årjäng and Strömstad that benefits on the effect of strong cross-border trade, Åre by its tourism, as well as Falkenberg Municipality by virtue of the special shopping destination Gekås.
Among already established shopping center, Täby Centrum continues to grow stronger after the expansions.
“The new Täby Centrum north of Stockholm is going very well. Size matters and Täby has the most units in the country, combined with a balanced mix of shops, new brands and a total concept. Moreover, it has relatively low competition in one of Sweden’s most affluent areas, ” says Anna Mocsary at the HUI Research, commenting on the report.