HUI Research: The Sun Is Setting on Swedish Retail

Sweden Sweden The cycle for the Swedish economy has peaked and we are currently witnessing the sunset of the economic boom. It is the overall picture that is emerging for both the retail and the Swedish economy as a whole, according to HUI Research. The European situation is shaky and the Italian economy is already in recession. Household concerns also have increased following the Riksbank's raise of the interest rate in December.


Share via e-mail

Household consumption for the full year 2018 landed at a modest 1.2 per cent in fixed prices, a figure that should be set in relation to the population development of 1.1 per cent. An incipient recession combined with structural changes poses major challenges for the Swedish traders. Jonas Arnberg, CEO of HUI Research, believes that digitization and internationalization are game changers for retail:

"All growth in the durable goods trade went to the network in 2018 and sales in the physical channels are shrinking. The end of 2018, with an unexpectedly weak December sale and a shift in Christmas shopping until November, also reveals that imported campaign days like Black Friday and Singles' Day have changed consumer buying patterns in just a few years."

The business cycle report from HUI Research is deepening in the competitive situation in the grocery trade. It is noted, among other things, that growth in recent years has been significantly higher in both the low-price segment and the high-end specialty goods trade than in the middle segment and the traditional food trade. However, by far, the fastest development is to be found the online.

"When food migrates to online channels, the retail shift goes into the next phase. With increased sales of food via the internet, traffic drops to our physical retail venues, which affects the entire retail segment. It is high time for retailers to review their store network structure and their digital strategy," concludes Jonas Arnberg.

Axel Ohlsson

Nordika New Main Owner in Amasten

Sweden Sweden After previously only being presented as an anonymous 'strong real estate player', Amasten now announces that it is Nordika that transfers the company MSEK 175 in equity through a directed new share issue.

Rikshem Acquires in Kalmar

Sweden Sweden Rikshem has acquired a project property in Kalmar, where a care home with 60 apartments will be erected by 2020, from Peab and P&E Persson.

"There Must Be a Generational Shift in the Industry"

Sweden Sweden The former Cushman & Wakefield CEO Agneta Jacobsson tells Nordic Property News why she left the company, her latest assignment and the messy industry at the moment.

Logistri Buys Portfolio

Sweden Sweden Logistri buys ten properties with a lettable area of ​​approximately 70,000 square meters for MSEK 584 (EUR 56M).

Angelo Gordon Makes First Swedish Acquisition

Sweden Sweden American Angelo Gordon, together with Scius Partners, has acquired the office property Barnängen 6 in Södermalm, Stockholm from AFA Sjukförsäkringsaktiebolag. The property built 1917 comprises 10,300 square meters of lettable area with large windows and generous ceiling heights. The property is located on eastern Södermalm which is under extensive development including a new metro station to be opened.

Skanska Builds New Hotel for Fabege

Sweden Sweden Skanska has signed a contract with Fabege to build Scandinavia's first zero energy hotel in Solna.

Akelius Sells for EUR 695M in Germany

Sweden Sweden Akelius sells 2,839 apartments in Germany to Deutsche Wohnen.

Skanska Builds New Foundry for Scania

Sweden Sweden Skanska has signed a contract with Scania to build a new foundry for engine components in Södertälje, south of Stockholm.

Areim Fills New Stockholm Project

Sweden Sweden Areim keeps filling their Stockholm project Brädstapeln with new tenants.

Swedish Project Wins Architectural Review Award at Mipim

Sweden Sweden Belatchew Arkitekter has been awarded the prestigious Architectural Review MIPIM Future Project Award 2019 at the 30th edition of the Mipim property event currently being held in Cannes, France, for Stockholm Loop project, in the ‘Regeneration Masterplanning’ category.