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Swedish Retail Sales Rose 0.4% in April 2008
Jun 25, 2008

The Swedish retail market experienced 0.4% growth in April 2008 due to high sales of value items, clothing, furniture and increasing disposable income.

The Central Statistical Bureau said that Swedish retail sales in April 2008 spurred by 0.4% against the same month last year, as reported by
Forbes
.

The statistical office also disclosed that durable goods, including furniture, clothing, stores of second-hand goods and mail order retailers, experienced 2.2% rise in sales during April 2008. However, the increase was below economists’ expectations of 3.5% projected after noting a rise of 3.7% in March 2008.

The main boost to the Swedish retail came from rapidly growing country’s economy. Consequently, there was a rise in the disposable income and with that, retail expenditure increased. The rise in expenditure power of consumers has shifted consumer attention towards more premium products such as fragrances and clothing. Moreover, higher income coupled with changing lifestyle made consumers to spend on luxurious items, pushing the retail sales up in the country.

Besides, cosmetic retail also observed high growth, though the fashion trend changed towards more natural look. Consumers bought expensive cosmetic products in subtle shades instead of eschewing color cosmetics completely. Hence, consumers’ inclination to buy more value products filliped growth in the cosmetic and toiletries sector of the retail market.

In addition, the Swedish retail market has been traditionally imitating the European retail trends by opening large chain of organized retail outlets in place of conventional retailers. New format of retailing facilitated consumers with wide array of options and opened new employment opportunities. Further, the VAT (Value Added Tax) reduced on food, cars, computers and audiovisual equipment that boosted the growth in the Swedish retail market.

Also, the Swedish retail industry has several well-established retail chains that are serving their own segments. However, the competition has intensified with the entry of more foreign players in the market. They are attracting customers by implementing effective marketing strategies.

According to a Research Analyst at
RNCOS, “The Swedish retail market is flooded with small local companies that are making retailers extremely important. But these companies have to employ effective marketing strategies to maintain the growth in retail sector. Quality customer service and promotion could be useful to give competition to foreign players.”

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