Norwegians who travel across the border to shop increased their purchases in Sweden by 600 million SEK during 2014.
The total turnover from the Norwegian border trade in the Swedish retail trade amounted to 16.9 billion SEK, an increase of four percent since in 2013.
This shows Svensk Handel and HUI Research’s border trade report presented today. The increase in trade has resulted in new jobs created in several border municipalities.
The Norwegian border trade accounts for three percent of the total Swedish retail sector, creating both jobs and export earnings in Sweden.
”The trade accounts for a large share of employment in Sweden. Thanks to cross-border trade, it is in some border municipalities, far more than in the rest of the country who work in the retail trade. In Strömstad example, 22 percent is working in retail. In Eda it is 21 percent and in Årjäng 13 percent. In addition to employment, the border trade has a major positive impact for municipalities throughout the industry and service to its inhabitants,” says Karin Johansson, CEO of Svensk Handel.
Developments in cross-border trade over the past 20 years has been significantly stronger than the development in other retail outlets in Sweden. The future prospects for Norwegian border trade in Sweden are considered good when the price differentials between Sweden and Norway are expected to remain favorable. Major investments are also made in cross-border shopping, both in terms of expansion and expansion into new locations. However, cross-border shopping is now a mature market with intense competition, which creates greater demands on trade.
”Competition is growing and for the continued development, it is important that traders do not only look to their own retail offerings, but also at the site’s attractiveness and the customer’s overall experience. Here are openings for cooperation with other players in the hospitality industry for the development of future cross-border trade,” says Elisabet Elmsäter Vegsö, responsible for city and place development at Svensk Handel.
The mapping of border trade is made for the fifth year in a row. This year with a certain focus on the Norwegian border trade in Sweden. Download it here.