Swedish retailers: Reduced profit margins in the summer

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Swedish retailers have a declining faith in the development of sales and continued weak profitability makes Svensk Handel’s Future indicator drop from -7 in May to -16 in June.

More than half of retailers (54 percent) believe that trade as a whole will experience reduced profit margins in the summer. Moreover, the proportion of traders who believe in increased sales volumes the next three months decreased.

”A chilly summer start lowered sales expectations, rising payroll taxes will reduce employment plans and the strong dollar reduced profitability – these are the retail trade confidence rock bottom,” says Jonas Arnberg, chief economist at Svensk Handel.

In June’s Trade Barometer merchants also answered questions about summer jobs. Three of four dealers will take in temporary summer staff this summer. In grocery stores the figure is 82 percent. Totally, the retail trade creates approximately 75,000 summer jobs.

”Summer is one of our most important labor market policy measures. It gives many young people a chance to take the first important step into the labor market,” says Jonas Arnberg.

Three of the four merchants replied that summer jobs often lead to further work in the company. For grocery stores, the figure was 85 percent.