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Why Gothenburg's retail market should be on your radar

Why Gothenburg's retail market should be on your radar

From Tesla and Starbucks to Superdry and Victoria’s Secret, Gothenburg is seeing a steady wave of international retailers and products enter its market. And the trend is expected to continue. Here are six reasons why Gothenburg’s retail market is worth considering.

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1) Tourism

Gothenburg’s tourism industry is thriving with both guest nights and air passenger numbers at record levels in 2016 (4.7 million and 6.4 million, respectively). This is contributing to sales growth both in retail and food and beverage. It’s estimated that foreign tourists in Gothenburg spend on average half their holiday budget on shopping.

“Gothenburg’s popularity as a tourist destination has exploded in recent years. This was a key reason why Michael Kors opened a concept store here in 2016,” says Helen Bairu, establishment advisor at Business Region Göteborg.

2) Population growth

For many years the Gothenburg region has enjoyed steady population growth. In March 2017, the population passed the one million mark and by 2030 it will be around 1.2 million. The average spending per person on retail, excluding food and beverage, is around SEK65,000 (about €6,675) per year.

3) A region with big plans

Gothenburg is transforming rapidly with extensive urban development plans in ideal city locations. Existing shopping streets and malls are expanding and developing, and new areas are emerging. Gothenburg’s county, Västra Götaland, happens to have the largest planned volume of new retail space with 700,000 square metres.

“We can see that the interest for these urban development plans is huge. This transformation together with the population growth of course opens up many opportunities for investors and establishments in many sectors including retail,” explains Helen Bairu.

4) Consumers and property owners want diversity

The retail industry has long been dominated by Swedish brands. But this is changing with more and more international retailers discovering and succeeding on the Swedish market.

“Both property owners and consumers want greater diversity in the retail offering,” says Helen Bairu.

5) Logistics

As Sweden’s top logistics location, and an import and export hub, Gothenburg has excellent resources for moving and storing goods. It’s well connected by road and rail, and is home to Scandinavia’s largest port as well as a major international airport. In addition, almost all major transport and logistics companies have offices in the region.

6) A strong and stable economy

Since the year 2000, the Gothenburg region has seen a 60% increase in gross regional product, a 63% increase in total wage sum and 117,000 jobs have been created. Gothenburg also has the lowest unemployment of Sweden’s metropolitan regions – a position it has held since mid-2016. 

 

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