Future Development Of Swedish Retail Industry

- May 21, 2018-

At the beginning of the trip (2017), some of the predictions put forward by the Svensk Handel's "Great changes in the retail industry" have appeared. Now, the new report put forward by the Swedish Trade Association will again describe the future development of the retail industry.

For the retail industry, the figures appearing in the report are worse than before. According to forecasts, by 2025, the number of people employed in the retail industry will be reduced by 49,000 to 133,000, but at the same time new jobs are being generated in e-commerce. With the same development, the number of physical stores will also reduce about 11,000 stores.

Between 2011 and 2017, about 5,000 shops have already disappeared. Johan Davidson, chief researcher of the Swedish Trade Association, said that the digitized and new consumer global market is rapidly changing the competitive market for trade and challenging previously successful business models, resulting in fierce trade competition and squeezed interest rates.

Sweden's e-commerce has grown rapidly. According to the latest information, it has reached 67 billion Swedish kronor in 2017, of which 13 billion Swedish kronor is a foreign e-commerce company. According to the Swedish Trade Association, 15% of the e-commerce share is an interruption point. The electronics and books industry has already crossed this point of interruption, and the fashion industry and non-recurring consumer goods now reach this point.

Johan Davidson pointed out that the fashion industry is now facing a very difficult challenge, is now in a breakthrough state, and must adjust physical stores to meet the growing foreign competition.