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Retailer’s guide

Sweden / Stockholm

This is an introductionary guide to the retail market in Sweden and Stockholm - a story of a progressive nation with a con-sistent and strong economy, a hunger for all things new and an open and transparent way of doing business. We hope to leave you with a better idea of the possibilities in bringing your business to the Nordic countries.

Getting to know Sweden

03Getting to know Sweden

Presented by: Business Sweden, Stockholm Business Region Development, Stockholm City Center Partnership, Swedish Trade Federation and Swedish Property Federation

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07 TheNordicmodel Intenationalized industry climate through a collaborative approach

10 TheSwediShreTailmarkeToverview The largest consumer goods market in the Nordic Region

15 iNhighdemaNd Sweden as a test market for new products

16 e-Tail My home is my shop

18 TouriSm Well worth a visit for business and leisure travel

21 reporT:TheprogreSSiveSwede A historical and cultural background to Sweden’s prosperity

25 FocuS:STyle On the shopping list: Fashion

27 FocuS:Food Sweden – the new culinary nation

28 Supply Shopping destinations – a hub for recreation, socializing and shopping

31 NewdevelopmeNTS Under construction and recently opened retail arenas in Sweden

37 STockholm The Capital of Scandinavia

reTailmapSSTockholm

39 largeSTShoppiNgmallS

41 iNNerciTyShoppiNgdiSTricTS

47 iNNerciTyiNdoorShoppiNg

52 a-Z Bringing business to Sweden – an A-Z guide

58 guidaNceaNdSupporT Assisting you and your organisation to expand to Sweden

Contents

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05Contents

At the very top of northern Europe are the Nordic countries – Sweden, Denmark, Norway and Finland –which represent a geographic entity home to approx-imately 26 million inhabitants.

The history of the region was once one of contin-uous battles between kingdoms, and many territorial alterations have occurred as a consequence. For instance, throughout history the southern parts of Sweden have periodically been under Danish rule.

Today the peaceful region of the North has replaced the fighting with collaboration, and although cultural differences exist, the four Nordic nations are tied together by their many similarities. The cross- boundary ideologies regarding cultural traditions, political visions and social security issues make up what has been labelled the Nordic Model. Interna-tional studies show that this hybrid system of the North, with its mix of social welfare benefits and high-tech capitalism, has made the region a highly attractive place, both for living and doing business.

These days, southern Sweden is closer to the Danes than ever thanks to a bridge-tunnel across Öresund. The 16 kilometre long structure serves as an example of the region’s collaborative approach and strong tradition of strategic investments in infrastruc-ture, engineering and innovation. In the 80s it was the Finns and Swedes who pioneered mobile com-munications with Ericsson and Nokia. Today, with Swedish companies like Spotify and Klarna, the region is once again ahead in the transition towards a digital society and cashless economy.

As business consultancy Booz & Company recently pointed out, this progressive environment is of special interest to companies that wish to test- market new products. Nordic consumers are by default willing to try new things, a quality that is further

The Nordic Model

With a strong tradition of innovation and collaboration the Nordic region has achieved a competitive and international business environment. And an enviable standard of living.

fuelled by the inhabitants’ spending power, which ranks among the top five positions in European comparisons. This, alongside a pronounced open-source attitude to information, virtually non-existent corruption and for-ward-thinking company legislation, has made the Nordic region a friendly yet competitive business environment with access to a dynamic and prosperous retail market.

An approximately 1.6 km long bridge links Sweden and Denmark. Since opening in 2000 it has created a prosperous region, connecting Malmö with Copenhagen, with a population of 3.7 million inhabitants.

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06 07Introduction Introduction

keyfacts–theNordiccountries

Population, m GDP per capita 2012 Index (EU28 = 100)

GDP average annual growth rate 2002-2012, %

France

€ 8,000208.4

66

Source: Eurostat, Key European retail market data 2012/2013, GFK on behalf of The European Shopping Centre Trust; Google; World Bank

Sweden

Denmark

Finland

Norway

9.6 129 2.2

retailturnovercomparedtolargereconomies

Inhabitants, m Turnover EUR, bn Turnover per capita EUR

Sweden

Denmark

Finland

Norway

TheNordicretailmarket,turnover2012,eurbillion

€73

Total

Nordicregion 26

Russia 144

Germany

UK

82

63

453.2

410.1

377.6

418.2

€ 3,100

€ 5,000

€ 6,000

€ 6,300

5.0

5.5

5.6

196

115

125

1.6

1.6

0.6

€ 208.4

€ 49.3

€ 42.2

€ 43.9

StockholmVästeråsTallinn

Riga

Vilnius

Minsk

Kiev

Örebro Eskilstuna

LinköpingNorrköping

Gothenburg BoråsJönköping

Malmö

Berlin

Hamburg

AmsterdamWarsaw

Praha

Helsinki

Copenhagen

Helsingborg

Växjö

Oslo

NORWAY

SWEDEN

FINLAND

ESTONIA

LATVIA

LITHUANIA

BELARUS

UKRAINE

POLAND

CZECH REPUBLIC

GERMANYNETHERLANDS

DENMARK

Uppsala

Umeå

Sundsvall

Östersund

Gävle

Kalmar

Luleå

Kiruna

Sweden’slargestcityregions

City region

Stockholm (greater region) Gothenburg (greater region) Malmö (greater region)Uppsala Linköping Västerås ÖrebroNorrköpingHelsingborgJönköping

Population 2012

2,127,006947,575670,394202,625148,521140,499138,952132,124132,011129,478

Population growth 2006–2012, %

10.96.79.19.47.25.77.75.37.06.0

09Introduction

Source: Oxford Economics

retailgrowthforecast:Expected annual growth 2014-2017

2.6%

Swedishretailsales2012:

dailygoods:

51%durablegoods:

49%

Swedishretailsales2012:

€73 billionretailgrowth:Since 1999

51%

Source: HUI Research

Swedenretailsales2001-2012Strong growth even during the financial downturn.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP growth, %Retail sales growth, %

0

2

4

6

Situated in the middle of the Nordic region and close to Germany, Poland and the Baltic nations, Sweden is home to 9.6 million inhabitants and is the largest of the Nordic countries. The majority of the popula-tion lives in the middle and southern parts where the largest cities – Stockholm, Gothenburg and Malmö – are situated.

During the past two decades, Sweden has had a stable population growth, especially in urban areas. This growth has been further accelerated over the past 5 years by the increase in immigration, higher birth rates and lower mortality. The annual population growth rate is 0.8 percent, compared to the EU 27 average of just 0.3 percent per annum. According to the World Economic Forum, Sweden is the second most competitive economy within the EU. Foreign companies employ more than 600,000 people in the country. This makes Sweden one of the most internationalised economies in the world

Sweden – the largest consumer goods market in the Nordic region

and, given its size, one of the largest recipients of foreign investments. Foreign assets accounts for around 60 percent of the nation’s GDP.

With the largest retail market in the Nordic region, Sweden is not only the natural entry point to the Nordic retail market but it also has the potential to be a gateway to the emerging markets of Eastern Europe and Russia.

keyfactsandeconomicindicators

GDP, %

Household consumption, %

Total retail sales, %

Inflation, %

Interest rate, %

Unemployment, %

Disposable income/capita Euro

GDP/capita

Disposable income/capita

Total consumption/capita

Retail sales/capita

Currency: Swedish krona (SEK)Currency convertion; 1 EUR=8.70 SEK

Euro bn

408 bn

197 bn

73 bn

190,200

42,700

21,900

20,600

7,600

2012

1.0

1.6

2.1

0.9

1.2

8.0

3.2

2013

1.1

2.0

2.0

0.0

1.0

8.1

3.0

2014

2.4

3.0

3.0

1.0

1.25

8.0

2.6

The Swedish retail market continues to benefit from steady economic growth and the internationalised business climate.

Source: HUI Reserch, Sept. 2013

10 11An overview of the Swedish retail market An overview of the Swedish retail market

Home electronics 8%Apparel 24%

Food & Beverages 24%

Domestic appliances 15%

DIY / home improvement / build materials 14%

Leisure products 8%

consumerspendinghabitspersegmentSwedish retail market, leading segments except daily goods.

Source: Key European retail market data 2012/2013, GFK on behalf of The European Shopping Centre Trust.

Apple StoreDecathlonDesigualHabitatHamleysHollister

HunkemöllerPicardPradaSephoraStella McCartneyZara Home

SomeexamplesofrecentinternationalretailentriestoSweden:

Source: WSP

consumerspendinghabitsRetail spending as a share of disposable income.

Other expenses Retail spending

63%Sweden 37%

68%Norway 32%

Netherlands 67%33%

64%Denmark 36%

73%Germany 27%

71%Switzerland 29%

70%UK 30%

64%36%France

74%26%Italy

69%31%Spain

Several years of economic growth supported by the Swedish government’s progressive tax and inter-est rate policies has enabled Sweden to improve on already high standards of living. Sweden has consis-tently benefitted from growing disposable incomes, even during the economic downturn – due to lower taxes, lower loan costs and decreasing inflation.

The strong Swedish economic growth, which has surpassed most other European countries for many years, is reflected in the expansion of the retail industry. Retail sales in Sweden have increased for 15 consecutive years and the overall retail sales show an increase of 51 percent since 2000.

In 2012 sales increased by 2 percent to EUR 73 billion and the continuous growth shows no sign of abating any time soon. Underpinned by a strong

economy, a steady population growth and rising disposable incomes, the latest forecast for Sweden suggest retail sales growth of 2.6 percent annually for the period 2014 to 2017. (Source: Oxford Economics).

Employing around 250,000 people, the retail industry is an important sector producing a 15 percent share of GDP and attracting more and more interna-tional retailers to Sweden. Today, some 130 international chains are present on the Swedish retail arena, the majority originating from Scandinavia, Germany, the UK and the US.

12 13An overview of the Swedish retail market An overview of the Swedish retail market

The rise of the Swedish retail market is driven by a strong economy, steady population growth and rising disposable incomes. Over the past decade disposable household income has increased by 39 percent, and of all household expenditures, almost 40 percent was spent on retail.

Suffice to say, the Swedish purchasing power is strong. The variety of channels available through which Swedes can make their purchases means that they are happy and demanding spenders, recognised both for setting new trends and rapidly adopting trends from abroad.

Because of this enthusiasm for trying out new brands and innovations, Sweden is often used as a test market for new products. Well-educated, widely travelled and technologically advanced,

In high demand

Swedes are considered curious yet demanding in their appreciation of new things.

The same goes for fashion, F&B products as well as technology – Diesel, Ericsson, Levis and Microsoft all test new products in Sweden. Calvin Klein, Coca-Cola, McDonald’s and Samsung are examples of companies that have chosen Sweden for early product commercialisation.

A strong purchasing power has turned the Swede into a demanding shopper who is happy to try out new things.

TopgdppercapitaineuropeIndex (EU28 = 100). GDP per capita in PPS.

Source: Eurostat 1 June 2013

Finland

UK

Germany

Denmark

Netherlands

Sweden

Ireland

Austria

Switzerland

Norway

115

110

122

125

129

129

130

131

160

196

The Swede’s consumption of clothing and shoes has increased by 37 percent over the last decade and reached total sales of EUR 9.2 billion in 2012.

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14 15Spending power Spending power

72%Of Swedish consumers shopped online in 2012.

With its strong tradition of technology enterpris-ing and innovation, Sweden has become a digital nation at the forefront. With one of the world’s most developed internet infrastructures, Sweden ranks third on the Boston Consulting Group’s 2012 global e-intensity index (measuring enablement, engagement and expenditure of internet activity). 91 percent of the Swedish population has access to the Internet. Of these, more than 50 percent own a smartphone. 72 percent of Swedish consumers shopped online in 2012, contributing to a 14 percent increase in total online sales.

The leading online retail segments are books, fashion and accessories, and home electronics, with the fashion sector experiencing the greatest increase in online expenditure. However, the increased confidence in online purchasing is also reflected in the retail food sector, where online sales have increased 300 percent since 2009, making the food segment the fastest growing of all online shopping categories. While only accounting for 1.5 percent of the total EUR 23 billion spent on groceries, this trend points towards a continued growth poten-tial for online retail in Sweden.

My home is my shop

TotalSwedishonlineretailconsumption2012:

Source: WSP

€3.9 billion

Supported by a nationwide fibre network and strengthened consumer confidence in online sales and payment systems, a further shift towards online retail across all segments is expected. As the next generation’s purchasing power picks up (the consumers who were born into the digital era), this trend is likely to gain further momentum.

More than 70 percent of Swedish consumers are familiar with online shopping and 20 percent have made purchases on a mobile device.

16 17E-tail E-tail

Shopping 46 % (+8.2%)

Hotel, food and drink 23 % (+11.1%)

Transportation 14 % (–1.5%)

Fuel 8 % (+9.1%)

Culture, recreation 6 % (+8.7%)

Other 1 % (9.7%)

Breakdownofforeignvisitors’expenditures,2012.percentagechangefrom2011.

Source: Swedish Agency for Economic and Regional Growth

With the arctic wilderness in its far north, fashionable life style in the cities and five-star culinary adventures all over the country, Sweden is gaining the attention of travellers from around the world. A new record was set in 2012 when 53 million commercial overnights were registered, the largest increase originating from non-European countries like China, Japan and Russia.

The fact that tourism is the fastest growing industry in Sweden (since 2000, annual foreign visitors’ consump-tion has increased by 162 percent, to EUR 12 billion) has had a significant impact on retail and shopping culture.

This trend can be observed in the capital city, where luxury brands compete for the affluent traveller’s attention on the city’s high streets. For example, the Italian luxury brand Prada recently opened its flagship store in the Bibliotekstan shopping district, an area that is already the home of brands such as Burberry, Marc Jacobs, Louis Vuitton, Bottega Veneta and Ralph Lauren.

Well worth a visit

growthofforeignvisitors’expendituressince2000:

162%

An increasing number of leisure and business travellers visit Sweden resulting in a boom in foreign visitors’ consumption.

18 19Tourism Tourism

One explanatory factor that historians and research-ers tend to come back to is the specifically ‘Swedish’ brand of progressiveness. In its own unique form it consists of a will to continually improve everyone’s living condition.

Historically, Sweden has distinguished itself as being an enterprising nation. It’s a spirit borne out of necessity. Remember, only 9.6 million people live on an area about the same size as Spain (a country with 46 million inhabitants). Sweden is big and sparsely populated. And the winters can be cold.

Unsurprisingly, long distances and cold weather during the winter tend to keep people apart. To make business, not to mention social relations, work in a country with as unforgiving a climate and isolating geography as Sweden’s, its inhabitants had to develop an extraordinary degree of receptiveness for new ideas. Any solution that may push things forward is considered good by the pragmatic Swede.

For instance, during the 19th century, barons and independent-minded peasants from different parts of the nation laid their prejudices aside and struck bargains across geographical and social borders. Getting along rather than getting stuck in short-sighted self-interest was good for all concerned parties.

Guided by an unerring sense for the best possible solution, this cooperative attitude is part and parcel of the Swedish psyche. Egoism has no placein the heart of the Swede, who tends to view ideas from the perspective of what’s best for everyone.

A very pragmatic point of view indeed. On discov- ering that an idea no longer works, Swedes tend to let it go with remarkably little fuss and search eagerly for the next new great idea. This attitude is captured in the affirmative exclamation “strålande!”, roughly

The progressive Swede

translated into English as “brilliant!”, which is a typically Swedish reaction to any great solution. Taken literally it is, of course, also an utterance that bears special significance in a country with long winters devoid of light – a great idea for a Swede is always enlightening. It’s like finding dry matches in a dark forest, making it possible to move on.

Yet another indicator of Swedish progressiveness and pragmatism was observed by The Economist in a special report on the Nordic countries in February 2013, “The broad social trust in strangers shown in Sweden and other Nordic countries”. As the article notes, social trust is a powerful resource originating from a combination of geography and history. “Economists say that high levels of trust result in lower transaction costs – there is no need to resort to American-style lawsuits or Italian-style quid-pro-quo deals in order to get things done.”

If we turn our eyes outward, the global effects of this progressive, pragmatic mind-set are especially visible in the field of technology where Swedes have shown themselves to be very innovative Companies founded by Swedes such as Skype, Spotify and Klarna have undeniably revolutionised the world’s communi-cation, music consumption and e-commerce habits.

But it is also discernible in Swedish consumer attitudes. Swedes are early adopters, trend-sensitive and demanding buyers. This, of course, begs the question of what driving forces actually lie behind the specifically Swedish form of progressive purchasing behaviour.

One driver is the fact that Sweden has a climate with four distinct seasons, which poses specific requirements on how people dress. Because of the cold winters and relatively hot summers Swedes are pretty much obliged to change clothing radically

Readers of international business press are likely to have read recent reports about Sweden and the country’s solid financial state. To put it simply, Sweden is doing quite well. While money cannot buy happiness, there are few doubts that it’s an important means to achieving higher standards of living. But what are the main reasons for Sweden’s prosperity?

Swedes have proven to be very innovative. Companies founded by Swedes such as Skype, Spotify and Klarna have revolutionised the world’s communication, music consumption and e-commerce habits. Seen in this picture is another Swedish innovation, Hövding – a collar for bicyclists containing a folded up airbag.

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20 21Report Report

from season to season. This means updating their wardrobes four times a year. One could argue that the constantly shifting climate in Scandinavia has made Swedes especially adaptive to change.

The growing trend among fashion brands to create their own sports collections and, conversely, sport brands to commission fashion creators to design limited editions have been quickly approved by Swedish consumers. This is not that surprising, since Sweden has a long health and sports tradition. Furthermore, given that Swedes are very style- conscious (CNN recently listed Sweden as the second most well-dressed nation in the world after Italy) this marriage of sports and fashion is right up the Swedish consumer’s alley.

The nation’s affluence also means that Swedes tend to travel a lot and thus expand their minds culturally. In general, the Swedish consumer has been exposed to many different cultures and has developed a taste for new products and experiences.

Against this background, it is no coincidence that Sweden is considered an important test market (with Stockholm as the testing ground par excellence). Swedish consumers love to test products against their own high standards and expectations. If a Swede likes an innovation or a brand he or she will make an extra effort to explain its greatness to his or her family and friends. The consensus among many international companies is, therefore, if you can make it in Sweden you can make it anywhere.

“The consensus among many international companies is that if you can make it in Sweden you can make it anywhere.”

Sweden’s climate with four distinct seasons poses specific requirements on how people behave and dress. The photographs above shows spring in Kungsträdgården, summer in the Stockholm archipelago, autumn on Djurgården and winter in Åre.

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22 23Report Report

Nudie Jeans is a progressive Swedish jeans brand based in Gothenburg. The jeans are made in premium denim qualities and come both as dry and prewashed.

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24 25Focus: Style Focus: Style

The days when fashion trends were of interest for the chosen few are long gone – today they are seen across the whole consumer spectrum. This is nowhere truer than in Sweden, where the reputation of the citizens’ ‘un-demonstrative yet completely assured’ style has started to spread outside the nation’s borders. (This quote is taken from CNN, which recently named Sweden the second most fashionably dressed country in the world, after Italy.)

There are a few important reasons for this enhanced interest in fashion and style. For one, Swedish financial growth and affluence plays a strong role. The other reason is a consequence of the first: Swedes are well-travelled due to the country’s wealth. This has made them more informed, open-minded and curious consumers who expects to be surprised. However, no less important than these factors is the Swedish tradition of not only absorbing international trends but also democratising them.

The access to information on trends through a fashion and lifestyle media wave during the 90s turned Swedes into savvy fashion consumers. And also fashion entrepreneurs. The late 90s and early 2000s saw a surge of innovation in fashion and design washing over Sweden, which expanded Swedish consumers’ sense of fashion considerably. These were the years when Swedish brands such as Acne, Filippa K, Tiger of Sweden and jeans brands like Cheap Monday and Nudie started to gain international footing. And with these, the Swedish fashion-conscious consumer was born.

In 2004, Swedish retailer Hennes & Mauritz (H&M) disrupted the fashion industry further by launching a designer collection by Karl Lagerfeld and making high-fashion designs available to everyone. Since then, the retail giant has successfully introduced designer collections by other fashion giants such as Stella McCartney, Lanvin and Comme des Garçons.

During the same period, fashion retail in Sweden grew significantly. Figures from Statistics Sweden (SCB) revealed that Swedish consumption of clothing and shoes had increased by 37 percent over the last decade and reached a total of EUR 9.2 billion in 2012.

Stockholm sets the tone for Swedish fashion con-sumption. Stockholm is where H&M has its head-quarters and successful local brands associated with the “Swedish fashion miracle” (Acne, Filippa K and Cheap Monday) were founded here. A high presence of international brands such as Bottega Veneta, Gucci, Louis Vuitton, Ralph Lauren and Prada further contribute to the city’s vibrant fashion shop-ping scene.

Meanwhile, social media and an extensive fashion blog scene have created knowledgeable fashion consumers outside the capital. Given the fact that Swedish towns generally lack stores with attractive Swedish and foreign brands, there is real business opportunity to be found outside the larger cities.

On the shopping list: fashion

A wave of international brands enters the Swedish market to supply consumers’ increasing interest in fashion and style.

With gourmet restaurants opening their doors all over the country, Sweden has turned into a haute-cuisine hot spot in Europe. A total of 15 Michelin stars are currently spread over 13 restaurants in Stockholm and Gothenburg.

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26 27Focus: Food Focus: Food

Swedish consumers are spending more and more money on experiences. And within the experiences segment, expenditure on food and beverages is particularly noticeable. In 2012, the restaurant industry’s turnover hit the SEK 100 billion (EUR 11.5) mark for the first time ever – just according to plan by Sweden’s Minister of Rural Affairs, Eskil Erlandsson, who in 2008 announced that he wanted to fashion Sweden into the “New Culinary Nation”.

“Swedish chefs and food innovators have a curi-osity and openness to external influences. Although we have a genuine culinary heritage, we never let it stand in the way of new ideas. Instead, we use it as a base on which to build new culinary experiences,” said the Minister in his vision’s manifesto.

And those experiences have definitely caught the eye of food critics across the globe. Sweden has emerged as a foodie nation to watch, with its modern food scene, indigenous cuisine and culinary techniques that highly influence global trends. Swedish chefs have achieved world recognition by taking home a gold and several silver medals at the Culinary Olympics, the Bocuse d’Or. And with gourmet restaurants opening their doors all over the country, Sweden has turned into one of Europe’s haute cuisine hot spots. As of 2013, there are two restaurants with two Michelin stars in the country – Mathias Dahlgren Matsalen and Restaurant Frantzén – both located in Stockholm. A total of 15 Michelin stars are currently spread over 13 restaurants in Stockholm and Gothenburg.

One particularly enlightening example of the segment’s boost is the case with Stockholm city shopping center Mood Stockholm, where the eateries showcase a far bigger turnover than expected. And bear in mind that food and drink prices in Sweden are the fourth highest in the EU.

The main reasons why Swedes are spending more and more money on eating and drinking can be summarised this way: 1) a continued robust economy; 2) the great reputation that Swedish restaurants have earned internationally; and 3) extensive travelling,

which has made Swedish minds especially receptive to new gastronomic experiences.

Unsurprisingly, curiosity about new types of food and beverages is strongest in Stockholm. Here, the expectations on new restaurants and food and bever-ages initiatives are high, which makes the city a great testing ground. Opportunities for anyone who wants to introduce new, exciting concepts to Sweden most certainly exist – from fast food to more fine dining concepts – especially in big cities such as Stockholm, Gothenburg and Malmö.

The new culinary nation

The Swedes’ interest in food & beverages experiences is reaching new heights while Swedish food innovators are gaining international reputation.

Source: Key European retail market data 2012/2013, GFK on behalf of The European Shopping Centre Trust.

retailsalesproductivityinshoppingcenters2012:

Country

NorwayLuxembourgSwitzerlandSWEDENFinlandDenmarkFranceUKIrelandCyprusBelgiumRussiaMaltaItalyPortugalGreeceSpainSloveniaGermany

Sales productivity (€ /m²)

7,8327,4066,9366,4116,2465,6305,4325,3565,352 5,2275,1674,7714,3954,2183,8343,7593,6823,5543,470

Sales m²/capita

1.261.431.511.211.251.401.211.121.111.111.360.660.780.990.970.841.101.121.44

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Shopping destinations – a hub for socialising, recreation and shopping

High street shopping and shopping centres are popular lei-sure and social arenas in Sweden. The country has more shopping destinations per capita than any other country in the EU – and the number is still growing.

Sweden is one of Europe’s pioneering countries for shopping centres. And when it comes to the number of shopping centres per capita, Sweden stands high above the European average. Ever since the 50s Swedish families – both those living in the suburbs and those in city centres – have been happily making weekly trips to their shopping destinations to pick up their groceries, do some shopping or to ‘fika’ (a Swedish word meaning “to sit down with a cup of coffee and a snack”).

Sweden has a good understanding of retail and retail property development. The country has even brought some familiar names into the international retail arena, for example, IKEA, the largest furniture retailer in the world, and H&M, which has achieved international success in the fashion sector. A well- developed retail market also means that there is an

appetite for new international retail brands among consumers and there are opportunities in most market segments. Property owners and developers welcome international concepts as they serve to dif-ferentiate their retail offering.

Shopping centres account for one third of annual retail sales and have emerged as the “third place” to find a Swede – a social hub outside the home and workplace. There is also a good supply of retail space. Strong private consumption and growth in retail sales have quickened the pace of renovations and new constructions that are being carried out in the city centres as well as outside the metropolitan areas.

There is an appetite for new international retail brands among Swedish consumers.

28 29Supply Supply

Under construction and recently opened retail arenas in Sweden

17 new shopping centres located all over Sweden are in the pipeline stretching to 2017. A handful of these developments are presented here, ranging from high-tech setups with a GLA of more than 100,000 sqm, to specialised shops in restored historical buildings.

Stockholm – moodExperiential shopping centre

Opened in 2012

In a restored classic inner city location, Mood Stockholm opened its forward-thinking retail arena in 2012. Mood brings together food and retail in a 10,450 sqm town-within-town environment including indoor streets and outdoor parks to offer its visitors a ‘beyond shopping experience’ that includes contemporary culinary experiences, life style shopping, art shows, beauty treatments, a relaxing spa and a concierge service. The popular bar and restaurant Boqueria, Ralph Lauren Denim and Swedish fashion brands Mayla and Rodebjer are examples of the commercial offers found in Mood.

Stockholm – humlegÅrdSgaTaNPersonal shopping street development

An ongoing project

The commercial district of Stureplan and Bibliotekstan is being extended to Humlegårdsgatan where, since last year, establishments like Gant Rugger, Eton, Morris, Luciano Padovan, Crockett & Jones plus the popular food palace Taverna Brillo – with a restaurant, bars, a bakery and a coffee shop – have already moved in. Drawing inspiration from trading streets in European capitals that favour bespoke goods, such as Jermyn Street in London, Humlegårdsgatan will soon welcome another five or six establishments to further strengthen its ‘contemporary classic’ profile.

Stockholm – SigNalFaBrikeNShopping mall

Opened in September 2013

In a restored 19th century factory that previously housed a telephone parts manufacturer and a record company, now stands Signalfabriken – a new commercial and cultural meeting point in the middle of the small suburban town of Sundbyberg. A handful of fashion and beauty retailers including H&M and The Body Shop are neighbours with a library and the Story Hotel & Restaurant, known to boutique hotel connois-seurs in its early days because of its trendy estab-lishment in Stockholm City.

Gothenburg – kÖpkvarTereNkulaNRegional centre

Planned opening 2015

In the Gamlestaden area in Gothenburg, one of Sweden’s most important industrial factories, the renowned SKF ball bearing works, is about to be transformed into a new regional centre with culture, restaurants, retail outlets and services. Located a few minutes northeast of central Gothenburg, the project involves retaining the existing buildings from the industrial era and supplementing them with new buildings to form a 35,000 sqm centre, creating an exciting historical environment that will be open to the public for the first time ever.

Top: Mood Stockholm is a recently opened experience based retail arena built around its restaurants. Bottom: The popular food palace Taverna Brillo has moved in on the personal shopping street Humlegårdsgatan in Stockholm.

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Stockholm – malloFScaNdiNaviaRegional centre

Construction started January 2012, will open in spring 2015

Also from the drawing boards of Wingårdh Architects, this is a project that is to be the largest shopping mall ever to be built in Scandinavia. With 101,000 sqm, 4,000 parking spaces and 250 retail spaces, Mall of Scandinavia will allow brands to present themselves in a highly innovative and prosperous retail context that cannot be found anywhere else in Scandinavia.

The Mall of Scandinavia’s location in Arenastaden (The Arena City), just a few minutes north of Stockholm City, is currently one of the largest urban development projects in Sweden. 2,000 new apartments are under construction, as well as an extended tramline that will open in 2014. Next to the mall is Stockholm’s primary sport and event arena, Friends Arena, opened in 2013 with a capacity of 65,000 spectators.

Malmö – emporiaRegional centre

Opened in October 2012

Emporia is an urban planning project in which offices, housing and retail come together in a combined development on the south side of Malmö. Located south of the city in Hyllie, the Emporia shopping centre is Swedish architect Gert Wingårdh’s first completed building from a competition-winning master plan of proposed residential and commercial blocks.

The ambition and size of this development has enabled the architects to challenge conventional shopping centre design. Ceilings, floors, signage, furniture, all the way down to the cast glass door handles, are custom made for Emporia. The ‘Amber Entrance’ is an attraction in itself with its coloured glass tiles that curve up and back to allow daylight to pour into the entrance courtyard.

From here shoppers are led towards 93,000 sqm of retail space divided into three levels that hold 200 retail spaces and attract 25,000 visitors daily. The roof of the structure accommodates a large park with a faceted landscape made up of lawns, and pavilions where outdoor dining and spa facilities are planned to open in the future.

“Like amusement parks, shopping centres need to offer new attractions at regular intervals”, stated the architects in their project description.

Stockholm – regeriNgSgaTaNShopping street development

Ongoing project

Regeringsgatan, from the south end of Gallerian to Kungsgatan, is a retail haven with major stores and shopping destinations such as Gallerian, NK and MOOD Stockholm. Property owners in the area are currently collaborating on several projects along the street, enabling additional spaces for flagship stores on multiple floors.

Top: Mall of Scandinavia is to is to be the largest shopping mall ever built in Scandinavia. Bottom: The ambition and size of Emporia Shopping outside Malmö has enabled the architects to challenge conventional shopping centre design.

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Stockholm is no longer merely Sweden’s financial engine. The region has been developed into the eco-nomic centre of Scandinavia. More than every third company in the country has started up in Stockholm County and the region accounts for 40 percent of Sweden’s GDP.

PWC (PricewaterhouseCoopers) named Stockholm as the world’s second most competitive city, world- leading in categories such as intellectual capital and innovation, health, security and liability.

Consequently, the Swedish capital is growing fast. Currently, around 35,000 people move into Stockholm each year, which makes it the fastest growing city in Western Europe. The Chamber of Commerce recently predicted that by 2030, Stockholm will grow at a rate six times faster than Paris and twice as fast as Copenhagen. Just looking at the city’s development over the past five to ten years shows a more international, dynamic and exciting place to be, live and, not least, to visit.

With close to 11 million commercial overnight stays per year, Stockholm County is the tenth most attractive destination in Europe. The number of

Stockholm – The capital of Scandinavia

commercial overnight stays in Stockholm County increased by 3 per cent to over 10.7 million in 2012. Comprised of 14 islands, centred on medieval Gamla Stan (Old Town), Stockholm guarantees visitors one breathtaking vista after another. And because most districts are on closely linked islands, the city breaks down into quickly recognisable, well-defined areas – all uniquely integrated with natural parks, islands and clean waters that only the Stockholm region can offer.

Recent years have seen a considerable surge in new buildings and expansions of shopping centres. There are many opportunities for foreign-owned shops and retail brands to establish a presence in the region and to cooperate with established players. The retail industry in the Stockholm region has seen a tremendous boom in the past ten years – a trend that is expected to continue.

For the time being, Stockholm County has one of the highest GRPs per capita in Europe. Of the 275 regions in Europe, Stockholm ranks at number eight with a 72 percent higher GRP per capita than the average region in the EU.

The Stockholm Region is by far the largest region in Sweden, with 3.6 million inhabitants, or 37 percent of the population. It is also where you find the most multinational companies in Scandinavia, the largest stock market and the most visitors.

“Stockholm is forecasted to be the fastest growing city in Western Europe.”*

GDP:Population:

Population larger Stockholm region: Workforce larger region:

Students: Companies:

Average age: Share of highly educated people:

Single households: Average income:

Foreign owned companies:Retail sales Stockholm county:

StockholmkeyFacts

Approx EUR 156 billion (40% of Sweden’s GDP) 2.2 million, growing with 35,000 per year3.6 million2.0 million118,000360,0003944%57%270,000 SEK11,800€16 billion (23% of total Sweden)

Source: Stockholm Business Region Development * Source: The Economist 2013

36 37Stockholm Stockholm

1.kuNgeNSkurvareTailparkHybrid centreTurnover: € 875 millionGLA: 230,000 m²Owner: mutiple

2.BarkarByreTailparkHybrid centreTurnover: € 459 millionGLA: 128,300 m²Owner: multiple

3.SicklakÖpkvarTerHybrid centreTurnower: € 319 millionGLA: 75,794 m²Owner: Atrium Ljungberg AB

4.kiSTagalleria Shopping centreTurnover: € 275 millionGLA: 45,940 m² Owner: Kista Galleria KB

5.NkDepartment storeTurnover: € 260 millionGLA: 24,067 m²Owner: Hufvudstaden AB

6.FarSTaceNTrumShopping centreTurnover: € 244 millionGLA: 41,350 m²Owner: Atrium Ljungberg AB

7.BrommaBlockSShopping centreTurnover: € 223 millionGLA: 55,000 m²Owner: KF Fastigheter

8.ÅhlÉNSciTyDepartment storeTurnover: € 221 millionGLA: 25,000 m²Owner: Åhléns AB

9.galleriaNShopping centreTurnover: € 209.5 millionGLA: 31,500 m²Owner: AMF Fastigheter AB

10.SkÄrholmeNceNTrumShopping centreTurnover: € 202 millionGLA: 97,845 m²Owner: Centeni Stockholm AB

11.lilJeholmSTorgeTShopping centreTurnover: € 166 millionGLA: 27,700 m²Owner: Citycon AB

12.vÄlliNgByciTyShopping centreTurnover: € 163 millionGLA: 44,211 m²Owner: AB Svenska Bostäder

13.SolleNTuNaceNTrumShopping centreTurnover: € 135 millionGLA: 35,000 m²Owner: Steen & Strøm

13.heroNciTyHybrid centreTurnover: € 133.4 millionGLA: 45,918 m²Owner: Heron Kungens Kurva AB

14.FÄlTÖverSTeNShopping centreTurnover: € 122 millionGLA: 21,000 m²Owner: AMF Fastigheter AB

15.STuregalleriaNShopping centreTurnover: € 117 millionGLA: 12,000 m²Owner: Sturegallerian AB

16.TheceNTralSTaTioNTransit hub mixed with retailTurnover: € 102.3 millionGLA: 10,000 m²Owner: Jernhusen

17.riNgeNShopping centreTurnover: € 102.3 millionGLA: 21,000 m²Owner: AMF Fastigheter AB

Top largets shopping destinations in and around

Stockholm according to turnover18.STiNSeNShopping centreTurnover: € 101.7 millionGLA: 34,004 m²Owner: CBRE Global Investors

19.mÖrByceNTrumShopping centreTurnover: € 87.3 millionGLA: 14,960 m²Owner: Diligentia AB

20.gloBeNShoppiNgShopping centreTurnover: € 65.4 millionGLA: 22,744 m²Owner: The Carlyle Group

21.puBDepartment storeTurnover: € 57.5 millionGLA: 16,800 m²Owner: Atrium Ljungberg

22.moodShopping centreTurnover: € 57.4 millionGLA: 10,450 m²Owner: AMF Fastigheter AB

TurNoverNoTavailaBle(N/a)

23.TÄByceNTrumShopping centreTurnover: N/AGLA: 60,800 m²Owner: Unibail-Rodamco

24.NackaForumShopping centreTurnover: N/AGLA: 54,200 m²Owner: Unibail-Rodamco

25.SolNaceNTrumShopping centre Turnover: N/AGLA: 36,000 m²Owner: Unibail-Rodamco

Stockholm

Solna

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Nacka

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Lidingö

Täby

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39Stockholm

1.hamNgaTaN Classic meets modern

The lively intersection of Hamngatan and Regeringsgatan is a crucial retail spot in Stockholm. With its wide pavements and the classic NK department store on the northeast corner and the modern Gallerian across the street, this is the city’s second most visited area, outnumbered only by Drottninggatan. Further north on Regeringsgatan is the recently opened galeria Mood Stockholm, adding a contemporary mix of F&B and apparel offerings to the area.

Examples of shops: NK, Gallerian, PK-huset, Acne, H&M, Zara, Stadium, Illums Bolighus and nearby Mood Stockholm.

Footfall: 55,000 people on a typical Friday; 67,000 people on a typical Saturday

2.droTTNiNggaTaNThree districts, one street

The southern part of this 1.5 km stretch is in the vicinity of the tourist-laden Old Town but has recently started to attract well-known brands. The central part has a crowded, urban ambiance with a vast retail offering and also houses the Åhléns City department store. The northern part is slightly calmer with old buildings, cafés and restaurants combined with retail boutiques. Examples of shops: H&M, Zara, KappAhl, Åhléns, PUB, Clas Ohlson, Esprit and Weekday.

Footfall (the central part): 100,000 people on a typical Friday; 90,000 people on a typical Saturday (The southern part can reach 35,000 on Fridays and Saturdays)

Shopping districts

Retail in Stockholm’s city centre is concentrated to six shopping districts, each with its own unique atmosphere and commercial supply.

3.kuNgSgaTaNThrough the heart of the city

The pulse is high on east Kungsgatan, a broad street flanked by neoclassical architecture accentuated by two Chicago-inspired tower buildings. Consumer electronics and sporting goods dominate the retail offerings here alongside restaurants and cafés. This side of Kungsgatan also has a vibrant nightlife as well as some of the largest premiere cinemas in Stockholm. The west side of Kungsgatan has a small-town character, housing shops, cafés and restaurants interspersed with planted trees and a welcoming atmosphere. The “ace in the pack” on this side is without a doubt Kungshallen, the largest food court in the city centre, comprising 25 establishments.

Examples of shops: Stadium, Elgiganten, Siba, Adidas Concept Store, American Apparel.

Footfall: 40,000 people on a typical Friday: 35,000 people on a typical Saturday

4.BiBlioTekSTaNaNdBirgerJarlSgaTaNSlow shopping

Bibliotekstan is a well-organised small-town environment gravitating around the classic shopping quarter Biblioteksgatan, with its rich offering of fashion and luxury goods. Birger Jarlsgatan is characterised by magnificent stone buildings housing numerous luxury brands’ shop fronts as well as a row of up-market restaurants and nightclubs. Examples of shops: Burberry, Prada, Louis Vuitton, Gucci, Ralph Lauren, Marc by Marc Jacobs, COS, Swarovski, Byredo and Rolex.


Clockwise from top left: Hamngatan, Drottninggatan, Kungsgatan.

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5.hÖTorgSciTyBusy diversity

Hötorgscity has a typical 1960s environment with pedestrianised Sergelgatan as the main street. The modern office buildings house several offices that contribute to the neighbourhood’s busy atmosphere – especially around lunch time. Shopping is diverse with an attractive range of products and brands for a variety of customers. Examples of shops: Desigual, H&M, Top Shop, Timberland, Monki, Mango, Stadium, PUB and a square with a busy outdoor market and a famouse food hall.


6.vaSagaTaNThe transit town

The Central Station with its 11,000 sqm retail area represents the heart of this district, characterised by access to communication and transportation. The main trade area is made up of large hotels and restaurants. Restaurant concepts vary greatly and include everything from gourmet to fast food. Sheraton, Scandic Continental, Nordic Light, Clarion Sign and Radisson Blu are some of the hotels along the street.


On a typical Friday, 100,000 people pass along Drottninggatan, the main shopping street in Stockholm with a vast retail offering.

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Bibliotekstan is a small-town like environment around the classic shopping path Biblioteksgatan and its offering of fashion and luxury goods from renowned international brands such as Prada, Stella McCartney and Marc Jacobs.

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HAMNGATAN

REGERINGSGATA

N

HAMNGATAN

REGERINGSGATA

N

GALLERIAN

THE ROYAL SWEDISH OPERA

HÖTORGET

KUNGSTRäDGÅRDEN

ÖSTERMALMSTORG

NK

MOOD

THE ROYAL DRAMATIC THEATRE

STUREGALLERIAN

PK-HUSET

1.hamNgaTaNClassic meets modern

Footfall: 55,000 people on a typical Friday67,000 people on a typical Saturday

3.kuNgSgaTaN Through the heart of the city


4.BiBlioTekSTaNaNdBirgerJarlSgaTaNSlow shopping


STOCKHOLM CONCERT HALL

T-CENTRALEN

ÅHLENS

CENTRAL STATION

2.droTTNiNggaTaNThree districts, one street

Footfall (the central part): 100,000 people on a typical Friday 90,000 people on a typical Saturday (The southern section alone can reach 35,000 on both Fridays and Saturdays)

6.vaSagaTaNThe transit town

Footfall: 20,000 people on a typical Friday 18,000 people on a typical Saturday

5.hÖTorgSciTyBusy diversity

Footfall: 42,000 people on a typical Friday 38,000 people on a typical Saturday

Map of central Stockholm

1.galleriaN80 shops and restaurants and a mix of retail concepts for everyone makes Gallerian an important meeting point in the middle of the commercial district. This spacious 1970s mall was reopened in 2004 after a complete renovation and has been continuosly upgraded since. Today Gallerian is an airy and effective retail space that is interconnected via underground passages with both NK and Sergels Torg. Examples of stores: Hollister, Esprit, Topshop, Foot Locker, American Cookies and H&M.

2.moodSTockholmMeeting the demand of the increasingly fashion, food and culture concerned Swede, Mood Stockholm opened the gates in 2012 to an experience based retail arena built around its fashion stores and res-taurants. Art shows, beauty treatments, a relaxing spa and a concierge service completes the eclectic mix of 60 flagship stores, selected designer bou-tiques and F&B establishments. Examples of stores: Club Monaco, Rodebjer, Ralph Lauren Denim & Sup-ply, Woods Wardrobe, Mayla and Timberland.

3.Nk110 different departments can be found within this classic department store, situated at the grand shopping street Hamngatan. Since its inception in 1915 the reason for visiting this palace like emporium is its vast assortment of high fashion and luxury goods. Restaurants and cafés for refreshments and leg rests are found throughout the 6 stories building and a popular grocery store and bakery is located in the basement. Examples of stores: Hermés, Ralph Lauren, Paul Smith, Burberry and Max Mara.

4.pk-huSeTConnected to the classic department store NK is the smaller PK-Huset with the ambition to offer something new for every family member. Well known Swedish fashion brands mingle with a handful of jewellery, watches, beauty and children’s clothes stores. Examples of stores: Acne, Tiger of Sweden, Gina Tricot, Polarn o Pyret and Face Stockholm.

Indoor shopping

5.BirgerJarlSpaSSageNIn the middle of the city’s fashion district is this somewhat hidden and timeless shopping mall. Its elegant art nouveau décor with dark, decorated wood panels and illuminated glass ceiling resembles the Burlington Arcade in London. Here are several multi-brand stores in fashion and beauty, among others, Mrs. H, offering a selection of women’s contemporary brands such as Ann Demeulemeester, Alexander Wang, Rick Owens and Isabel Marant.

6.STuregalleriaNLocated in the dandyish area of Stureplan, Sturegallerian has been a meeting point for discern-ing shoppers, bookworms, gourmets, audiophiles, coffee lovers and interior design enthusiasts since 1989. Sturegallerian aim to cater to several walks of the urban life with a diverse offering of shopping, restaurants, patissserie, nightclubs, entertainment and recreation. Examples of stores: Gateau, J.Lindeberg, Massimo Dutti, Bang & Olufsen, Björn Borg, Casall and Sturebadet Spa.

7.paSSageNregeriNgSgaTaNA smaller shopping arcade between NK and Mood Stockholm with an emphasis on home styling. Also here is Systembolaget, the government owned chain of liquor stores in Sweden, with a separate section for fine wines. Examples of stores: John Wall, Bruka Design, Cervera and Coffeehouse by George.

8.ÅhlÉNSciTyA large variety of products for a wide range of con-sumers is typical for Åhléns, the leading department store operator in Sweden whose flagship Åhlens City is the largest department store in Stockholm. Here, at the core of the city centre, over 300 quality brands co-exists to offer the widest assortment in town of fashion, beauty, accessories and life style products. Examples of brands: Calvin Klein, Hugo Boss, Lacoste, Kookai, Muji, Guess, Diesel and Acne.

Located throughout the city – from bourgeois Östermalm to ‘hipster-söder’ – these are the Stockohlmers’ favourite shopping centres.

The beautiful Birger Jarlspassagen is a short-cut from Norrmalmstorg to Stureplan, filled with exclusive boutiques.

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9.puBThe city’s oldest department store dates back to 1882 and continues to build on its heritage as Stockholm’s original clothing and home styling supplier. The lower floors are orientated towards Swedish and Scandina-vian fashion brands for both women and men while the two top floors are entirerly dedicated to furniture and home accessories.Examples of brands: Gant, Tiger of Sweden, Minimarket, Rodebjer, R.O.O.M, Habitat and Housedoctor.

10.FÄlTÖverSTeNIn the middle of the quiet residential area of Östermalm is Fältöversten, a spacious centre with around 60 stores and restaurants that satisfies most of the shopping needs for its affluent neighbours. Fashion and beauty co-exists with a bookstore, an award-winning super-market, consumer electronics, and a pet shop. Examples of stores: H&M, Kicks, Lindex, Make Up Store and The Body Shop.

11.vÄSTermalmSgalleriaNWith Västermalmsgallerian, Stockholm’s west side, Kungsholmen, finally got its own shopping centre a couple of years ago. Some 40 stores including groceries, mainstream fashion, electronics, home accessories and children’s wear makes sure the many inhabitants of this residential area find their shopping goods without leaving the neighbourhood. Examples of stores: H&M, Gina Tricot, Polarn o Pyret, Espresso House, and 3.

12.BruNoSödermalm’s busiest street Götgatsbacken attracts a young and trendy crowd with its diverse offering of specialized F&B and high-street fashion store fronts. Situated on the top of this hill street is the compact mall Bruno that offers a mix of Scandinavian and inter-national brands. Bruno also comprises an asian cuisine restaurant plus a bar and cafe with a popular roof top terrace. Examples of stores: Filippa K, Whyred, H&M, Samsøe & Samsøe and American Apparel.

13.SkrapaNOn the ground floor of what use to be the Swedish tax authorities’ headquarters is today a 8,500 sqm retail space with a wide range of shopping offer-ings as well as a roof top restaurant and a skybar.The well known highrise – today converted into student apartments – has a central location on Södermalm and attracts shoppers of all ages. Examples of stores: Levi’s, Monki, Dressroom, Espresso House and Vapiano.

14.horNSTullOpened earlier this year in the city’s hipster crowded southwest corner, Hornstull is a welcoming commercial addition to the district (that also share its name with the shopping centre). With a pronounced emphasis on food, drink, and social shopping, visitors can choose from a mix of some 30 F&B and aparell out-lets. Examples of stores: H&M, Picard, Juiceverket, Frozzy Yogurt, L’Occitane and Designer’s Loft.

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Nordiska Kompaniet (NK) in Stockholm city is the most exclusive department store in town.


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41.NkTurnover: € 260 millionGLA: 24,067 m²Owner: Hufvudstaden AB

2.ÅhlÉNSciTyTurnover: € 221 millionGLA: 25,000 m²Owner: Åhléns AB

3.galleriaNTurnover: € 209.5 millionGLA: 31,500 m²Owner: AMF Fastigheter AB

4.FÄlTÖverSTeNTurnover: € 122 millionGLA: 21,000 m²Owner: AMF Fastigheter AB

5.STuregalleriaNTurnover: € 117 millionGLA: 12,000 m²Owner: Sturegallerian AB

6.riNgeNTurnover: € 102.3 millionGLA: 21,000 m²Owner: AMF Fastigheter AB

7.puBTurnover: € 57.5 millionGLA: 16,800 m²Owner: Atrium Ljungberg

8.moodTurnower: € 57.4 millionGLA: 10,450 m²Owner: AMF Fastigheter ABVisitors per year: 5 million

9.vÄSTermalmSgalleriaNTurnover: € 54.4 millionGLA: 8,201 m²Owner: AMF Fastigheter ABVisitors per year: 8.3 million

Kungsholmen

10.SkrapaNTurnover: € 34.5 millionGLA: 8,500 m²Owner: Vasakronan

11.horNSTullTurnover: N/AGLA: 11,000 m²Owner: Bonnier Fastigheter

12.paSSageNregeriNgSgaTaNTurnover: N/AGLA: 6,048 m²Owner: Nordea Bank AB

13.pk-huSeTTurnover: N/AGLA: 5,982 m²Owner: Nordea Bank AB

14.BruNoTurnover: N/AGLA: 2,700 m²Owner: SEB Trygg LivVisitors per year: 1.8 million

15.BirgerJarlSpaSSageNTurnover: N/AGLA: 500 m²Owner: Hufvudstaden

markeThallS

16.ÖSTermalmSSaluhallTurnover: N/AGLA: 3,814 m²*Owner: Fastighetskontoret

17.SÖderhallarNaTurnover: N/AGLA: 2,000 m²*Owner: Fastighetskontoret

18.hÖTorgaShalleNTurnover: N/AGLA: 2,835 m²*Owner: Fastighetskontoret

*INCL. STORAGE AND KITCHENS

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50Stockholm

hQschooSeSwedeNSweden has the second highest number of global headquarters in the world per mil-

lion inhabitants. 14 of the Forbes 2000 companies have their global headquarters based in Sweden.

iNTerNeTSavvySweden tops the Networked Readiness Index’s (NRI) rankings as the most networked economy

in the world. The country’s showing is outstanding across the board: 1st, 4th, and 3rd for environment, readiness, and usage, respectively. E-commerce of goods grows strongly. Seven of ten consumers shop online, with consumer electronics, clothes and books topping the list.

JuSToNeworld For most Swedes today, sustainability is a way of life. Sweden ranks first in the EU in

consumption of organic foods, leads the way in recycling drinks cans and bottles, and gets most of its energy from renewable sources. Sustainable development is a key objective for the Swedish Government, both at home and abroad. The rea-soning is that members of one generation should conserve resources for future generations. A recent study by the European Commission found that 40 percent of Swedes had purchased an eco-labelled item over the past month, compared with the EU average of 17 percent. In 2010, Stockholm won an award for being the first Green Capital of Europe, for its efforts to improve the environment, the economy and the quality of life of its citizens.

keymoNeyKey money for retail premises is not that com-mon but it exists, particularly in attractive

prime locations. A security deposit or bank guaran-tee equivalent to between three and six months’ rent is normal.

lowcorporaTeTaXSweden is one of Europe’s most competitive locations for corporate taxation. Sweden’s

tax structure is transparent, efficient and designed to meet the needs of international investors. Corporate tax is low by international standards at a rate of 22 percent, and is also based solely on the company’s annual profit. No license tax or local corporate tax is applicable. Tax frameworks for businesses compare very favourably with other OECD nations.

moreceNTralThaNyoumighTThiNkBy plane, train, boat, truck or car, Sweden lies within a comfortable distance to many

European destinations. Flights from Sweden reach the rest of Europe within two hours and major Asian markets and the US in about 10. By truck, all major

cities in Denmark, Finland and Norway can be reached in less than 12 hours. Estonia, Latvia, Lithuania and western Russia in 24. Sweden ranks at the top as the most trade-friendly and logistically efficient nation in the world, moving goods and connecting manufactur-ers and consumers with international markets. Sweden is also the preferred choice when consolidating distri-bution and warehousing activities in Northern Europe.

NoTJuST“LAGOM”The word “lagom” can be applied to many things – sugar in coffee, behaviour, having a

job, the size of your house, drinking. It pretty much means “it’s just right”, “everything in moderation” and “don’t get too big for your boots” all rolled into one word. Swedish business people consider themselves lagom, meaning normal. However, the Swedish way seems to be amazingly efficient. Sweden is consid-ered an innovative and creative country, and one successful Swedish company after the other appears on the global market.

opeNiNghourS10 am to 6 or 7 pm are the regular opening hours, which is standard for most shops on

weekdays. Most shops and department stores are also open on Sundays. In the larger cities, department stores remain open until 7 pm or longer. Retailers are free to set their own opening hours, as long as this does not conflict with the rental agreement.

paymeNTSoNTimeAccording to Intrum Justitia’s European Payment Index, Sweden is a country where companies

can expect to get paid on time for their services. The average payment periods in Sweden are 26 days for B2C and 35 days for B2B, compared to the European average of 36 days for B2C and 49 days for B2B.

QualiTyoFliFeThe Human Development Report 2013 from the United Nations ranks Sweden as the world’s

seventh-best country in which to live. The report’s human development index compares living conditions in the world’s nations and determines rankings based on a wide range of parameters, including life expec-tancy, education enrolment levels, adult literacy and economic output.

reNTalcoNdiTioNSCompared to other countries, tenants in Sweden have a strong legal position and right to the

rented premises. Standard lease terms are 3-5 years for shopping centres and high street units. The tenant has the right to renew the contract for a further three years. Rents are normally constructed as a minimum base rent with a turnover element if the sales exceed the base rent. There is a high standard in the premises and fee structures are generally cost-effective. Rents

aNNualgrowThThe Swedish retail market has enjoyed positive annual growth for more than a

decade, fuelled by steady population growth and ris-ing disposable incomes. Overall, retail sales show an increase of 51 percent since 2000, and according to the Swedish Trade Federation, retail sales are expected to grow by 30 percent year-on-year until 2020.

BuSiNeSSFrieNdlySweden is known for its non-hierarchical management approach based on consensus,

knowledge-sharing and delegation of responsibility to the individual. Business frameworks are transparent and user-friendly. A high percentage of those employed speak English, and in many cases, additional languages.

collecTiveagreemeNTSweden has a tradition of mutual respect and cooperation between companies and their

employees. Labour relations between employers and trade unions are cordial and constructive. Indus-trial disputes and conflicts are rare. Employers or employers’ organisations hold discussions with the unions to agree on collective agreements for employees. These regulate wages and employment conditions. About 90 percent of employees in Sweden are pro-tected by collective agreements. Employers in the retail industry are automatically entered into collec-tive agreements when they become members of the Swedish Trade Federation.

douBleTouriSmreveNueSBy2020Tourism is Sweden’s fastest growing industry, with significant revenues expected to double

by 2020. Shopping tourism is on the rise and Sweden is mostly visited by tourists from neighbouring Den-

Bringing business to Sweden,an A-Z guide

What seems to be the overall experience among companies that have brought their business into the Swedish market is how easy things are. The business climate is recognised by simplicity, openness and transparency. Presented here is list of arguments, in alphabetical order, as to why Sweden is a thriving market that should be looked into.

mark, Norway and Finland, and others nearby, such as Germany and the UK. Strongest growth comes from non-European markets like China, Japan and Russia

eXperTS’FaSTTrackSweden offers special income tax relief to encourage highly skilled people, such as interna-

tional executives, experts, researchers and others with special skills, to work in Sweden. The tax relief scheme makes it easier for foreign-owned and domestic com-panies to attract experts and other key people from abroad to work in Sweden. The tax relief is motivated by the fact that foreign experts and others who live in Sweden for short periods cannot gain full advantage from Sweden’s social welfare and pension system.

FiNaNciallySTaBlecouNTrySweden has not been as affected by the financial crisis as the rest of Europe. With lowered interest

rates and rising disposable incomes, the outlook is positive. In addition, low sovereign debts, transparent economies, an intact banking system and consumers with sound personal finances produce a rare combina-tion of stability and growth potential. Sweden has a competitive export industry focusing on investment and on input goods such as components and raw materi-als.

grocerygiaNTSThe three largest retailers in Sweden are in the grocery retailer segment. The largest of these

companies, in terms of retail sales value in 2012, is ICA Sverige, followed by Coop Sverige and Axfood. Multinational actors play an important role in Swedish retail, especially in non-grocery retail, but they are now gaining in significance even in grocery retail thanks to the escalating share of German Lidl and Danish Netto discounters.

52 53Bringing business to Sweden, your a-z guide Bringing business to Sweden, your a-z guide

are linked to changes in the consumer price index to keep pace with inflation. The market rent includes heating and excludes property tax.

SalarycoSTSThe average monthly salary for a full-time sales clerk in retail is €2,300, excluding social

charges (15.49 percent for those under age 26). There is no statutory minimum wage in Sweden; the trade union stipulates in the collective agreement (see above) a minimum monthly and hourly wage depend-ing on age and experience.

TraNSpareNcyAll Western politicians claim to promote trans-parency and technology. The Scandinavians

can do so with more justification than most. Perfor-mances of all schools and hospitals are measured. Sweden is also a leader in e-government – you can pay your taxes with a text message. Governments are forced to operate in the harsh light of day. Sweden allows everyone access to all official records. Compared to many other markets, Sweden has a transparent climate with information, from real estate agencies to governmental institutions, easily accessible by all.

urBaNiSaTioNSwedes are escaping from the countryside at a fast pace and gathering in the major cities

of Stockholm, Gothenburg and Malmö. Stockholm is the fastest growing city in Western Europe and by 2030, the Stockholm region will have about 4 million inhabitants.

vaTIn Sweden, VAT (in Swedish “moms”) is applied at a standard 25% rate on almost all goods and

services. Some exceptions apply, however, to hotel accommodation (12%) and passenger transportation (6%).

worldcompeTiTiveNeSSSweden’s overall performance in the prestigious World Bank’s ranking, the World

Competitiveness Report, puts Sweden in fourth place in overall global competitiveness, in 18th place in economic performance, seventh in business efficiency and second in infrastructure.

X-TrapriSNormally spelled “extrapris”, “x-trapris” is sometimes seen in shop windows to indi-

cate a temporary reduced price on selected items. According to the Consumer Agency’s guidelines on

temporary price activities, these concern price reductions of at least ten percent or five percent if the margin is less than ten percent. The item must belong to the shop’s normal range and should have a regular price.

yuppieSaTSTureplaN Stureplan is more than an address, it is also Stockholm’s symbol for luxury and style.

Business people, media icons, models and celebri-ties stroll past the square’s famous “mushroom” to visit some of the city’s most exclusive clubs, restaurants and retailers along Birger Jarlsgatan and Bibliotekstan.

ZeiTgeiSTawareNeSSSweden is recognised for both setting new trends and rapidly adopting them from

abroad. Consumers are considered demanding buyers who value new technology, function and quality as much as design.

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54Bringing business to Sweden, your a-z guide

Why Sweden?

·Top-performingandgrowingeconomy.·Steadypopulationgrowthandwealthyinhabitants.·Sophisticatedconsumerswithhighpurchasingpower.·Strongretailsalesgrowthfor15consecutiveyears.·appetiteanddemandfornewretailconcepts.·earlyadoptersandwellestablishedtestmarket.·recognizedasatrend-settingcountry.·largelyunregulatedmarketopentointernationalcompetition.·availabilityofattractiveretailspace.·Transparantmarket,easytodobusiness.·advancediTnationwithtopinternetpentetration.

56 57Why Sweden? Why Sweden?

investmentpromotionorganisations

BusinessSweden is the official Swedish trade and invest council with the mission to facilitate interna-tional investments and to make it easier for Swedishcompanies to grow internationally. We support inter-national companies considering Sweden with inde-pendent advice, information, establishment support and introduction to all relevant network contacts. Our services are free of charge. www.business-sweden.se

StockholmBusinessregiondevelopment is theofficial investment promotion agency of the city ofStockholm. We work with marketing and developmentof the entire Stockholm region as a business destina-tion. Our services are free of charge. www.investstockholm.com

industryfederationsandassociations

TheSwedishpropertyFederationStockholm is a highly pro-ac¬tive trade organization promoting an efficient real estate market in Stockholm. www.fastighetsagarna.se/stockholm

SwedenTradeFederation(Svenskhandel) is an organisation representing the interests of retailers, wholesalers and importers in Sweden. It supports companies involved in trade and creates better trading conditions. Sweden Trade Federation is also the employers’ organisation serving the trade and com-merce sector. www.svenskhandel.se

Stockholmcitycenterpartnership is a non-profit organization working with projects in the city center of Stockholm. The goal is a more attractive city center. Our projects aim to develop places and functions in the city center in cooperation with the local authorities, propertyowners and retailers. Stockholm City Center Partner-

This publication is provided by a number of public investment promotion organisations, industry federations, property own-ers and consultants. Interested in learning more about the opportunities?

Contact us for assistance, information and network con-tacts when considering expanding to Sweden and Stockholm.

Let us assist you in setting up your business in Sweden

ship also works with insight, measure and analyze footfall, handle retail index and pick up on the latest trends in the City. The organisation has also initiated a Retail Advisory Board, with the ambition to facilitateand support the development of new attractive retail space and establishments in the Stockholm City center together with the municipality and property owners.www.cityisamverkan.se

propertyowners

amFFastigheter is one of Sweden’s largest property investment and development companies, focusingmainly on urban commercial office and retail premises in Stockholm and Gothenburg, with its main invest-ment focus on Stockholm city centre. AMF fastigheter is a subsidiary of AMF Pension Insurance. www.amffastigheter.se

vasakronan is the leading commercial property com-pany in Sweden. Our strategy is to focus on centrally located office and retail premises in Sweden’s major growth regions; Stockholm, Uppsala, Gothenburg, Malmö and Lund. We believe in city shopping whole-heartedly and with 355,000 sqm retail space we are the largest retail operator in Sweden. www.vasakronan.se

consultants

gate46 provides solutions making retail more profit-able for both tenants and landlords. We offer Tenant representation, Site Acquisition & Disposal, Agency, Valuation & Advisory, Contract management and Property Development. www.gate46.se

Tenrep is a dedicated consultant group. We take pride in giving the best possible advice to expanding retail companies interested in the Scandinavian market. www.tenrep.se

58Why Sweden?

retailer’s guide sweden / · pdf fileretailer’s guide sweden / stockholm. ......

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