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Norway shoppers flood cheaper Swedish stores

Norway shoppers flood cheaper Swedish stores

Published: 05 Sep 2012 06:45 GMT+02:00
Updated: 05 Sep 2012 06:45 GMT+02:00

Eager to save money, Norwegian shoppers are streaming over the border in record numbers to avoid hefty domestic prices by instead stocking up on groceries in Sweden, new figures show.

Over the last four quarters, Norwegians spent a total of 11.7 billion kroner ($2 billion) in Swedish stores, according to Statistics Norway.

While their till-filling neighbours gave Swedish retailers a welcome boost – figures were up 9 percent on the previous 12-month period – Thomas Angell, trade director at Norway’s Enterprise Federation (Virke), expressed concern.

”Cross-border trade eats into turnover for Norwegian stores, leading to job losses in the grocery and trade sectors,” he said in a statement.

”Unfortunately, all the indications are that the cross-border trade will continue to grow as long as there’s a lot of money to be saved by shopping in Sweden.”

In the last year, the number of day trips from Norway to Sweden rose by four percent to a total of 6.7 million.

According to the Statistics Norway figures, five percent of Norwegians’ total grocery spend now goes to Sweden.

Reaping the benefits, the Nordby Centre on the Swedish side of the border posted record sales results this summer. Located just off the motorway from Oslo, Nordby is always thronged with Norwegians and is much bigger than any shopping centre in Norway, newspaper Aftenposten reports.

Concerned by a development that has gathered pace in recent years, Thomas Angell urged the government not to raise taxes on popular products in the October budget.

"The price differences between Norway and Sweden on popular goods like alcohol, tobacco products, chocolate, and sweets are at a critically high level,” he said.

"Norwegian politicians must now take cross-border trade seriously.”

The Local Norway

The Local (news@thelocal.se)

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Your comments about this article

08:06 September 5, 2012 by eurobloke
Why areyou showing a picture of a British Tesco supermarket? Couldn't find a pic of an ICA, Coop or a WiLLy:s?
09:02 September 5, 2012 by reinc2u
eurobloke,

it's an under conscious hint to Norwegians: look at other borders to do shoping.
09:15 September 5, 2012 by The Local
eurobloke,

You are right and we have changed the image to a regular Swedish ICA store. Thanks for pointing it out!
10:43 September 5, 2012 by Abe L
Very positive development, the more foreign money spend in Sweden the better.
16:38 September 5, 2012 by oldonpalouse
I hope the Local examines why the same goods are more expensive in Norway. If Norway lowers prices in competition with the Swedish stores, then all is well. Or is that not allowed? Why?
00:43 September 6, 2012 by Swedish Cat
Higher taxes in Norway as well as rents and labour. Supermarkets are making more money than the oil rigs I was told by some Norwegians, Still is attractive to them to keep the prices up as people still need to eat. A very small part that goes to Sweden in the end.

I agree with Abe L

It is very positive for Swedish economy and may it last!
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