Steen & Strøm (S&S), the world’s oldest repeatedly operating division retailer, has recorded a 14% improve in gross sales on a yearly foundation to June 2024. In Q1 2024, the luxurious division retailer celebrated its best-ever quarter, with gross sales growing by 14% in Q1 2024 in comparison with Q1 2023.
Gross sales from tax-free purchasing are up 32% on a yearly foundation, signalling a big improve within the variety of rich worldwide vacationers flocking to Norway’s capital.
The highest 5 worldwide customer nation teams over H1 2024 included: USA; China; UK; Australia; and Indonesia. A report variety of guests from Saudi Arabia and the UAE are additionally anticipated in August.
Norway operates a ‘tax-free’ purchasing coverage, whereby worldwide guests are allowed to say the tax again from the cash they spend on purchasing. That is notably related for luxurious purchasing locations resembling S&S, given the price of high-end items.
Promenaden Administration, which is wholly-owned by London-based funding group MARK Capital Administration however manages S&S, claims the marked improve in gross sales has additionally been aided by the phenomenon of ‘coolcationing’, with hotter driving vacationers to cooler locations in Europe, resembling Scandinavia the place tourism and journey trade added an estimated $124 billion to the regional economic system in 2023, up 6% from the 12 months.
S&S has additionally benefited from ongoing funding by homeowners MARK Capital Administration and Promenaden Administration – which has additional attracted consumers by diversifying the shop’s product and service choices, in addition to the brand new provision of experience-led purchasing experiences.
For instance, the division retailer opened Norway’s first and solely ‘Tech Corridor’ earlier this 12 months, in addition to a recent style and streetwear providing. Set over 7,500 sq ft and that includes over 500 manufacturers, the Tech Corridor has been conceptualised as a creche for Norway’s artistic group via the supply of a mix of first-class retail choices, in addition to a daily program of occasions that includes workshops and masterclasses.
The division retailer’s e-commerce gross sales additionally noticed important improve over the past 12 months, with on-line gross sales income rising by 318%, helped by the addition of 49 new manufacturers to its client providing of 91 manufacturers in complete, with a goal of over 200 to be added this 12 months.
David Wilkinson, Steen & Strøm’s govt director at Promenaden Administration, stated: “Steen & Strøm has been the beneficiary of an inflow of worldwide luxurious consumers coming to Oslo, as travellers from across the globe more and more look to the town as one in all Europe’s most important high-end purchasing locations. Norway’s tax-free purchasing coverage has offered an extra incentive.
“We’re additionally more and more seeing excessive climate patterns and heatwaves affect travellers’ vacation spot selections. Oslo is one in all a number of Scandinavian cities benefitting from customers choosing a comparatively cooler, Northern European local weather in the course of the summer time journey months.
“Nonetheless, we additionally labored laborious to seize this heightened curiosity in Oslo as a purchasing and journey vacation spot by investing considerably to enhance our providing. We have now discovered that retail consumers are more and more drawn to an experience-led purchasing expertise, and our new tech corridor, with assembly locations, an occasions program, and working areas is designed to encourage group engagement.”
Steen & Strøm first opened in 1797. The 12,600 sq. m, nine-storey constructing underwent a €30m refurbishment in 2021, which included the reconfiguration of the downstairs Magnificence Corridor and a brand new entrance on Karl Johans Gate. Mont Blanc, Dior Magnificence and LOEWE have all just lately grow to be a part of the 1,000+ manufacturers at Steen & Strøm.
The expansion in gross sales follows a luxurious growth in Norway and an inflow of high-end manufacturers to Oslo, led by MARK Capital and Promenaden Administration, which personal the 23,000 sq.m space of buildings – together with S&S – in Oslo’s purchasing district, recognized merely as ‘Promenaden’.
This contains Nedre Slottsgate, the road on which S&S is situated and is called the ‘Bond Road’ of Oslo. It’s residence to 9 of the ten most luxurious manufacturers on the planet; Gucci, Bottega Veneta, Burberry, Saint Laurent, Moncler, Chanel, Louis Vuitton, Prada and Dior all occupy premises on the road, with these manufacturers being launched to Nedre Slottsgate by Promenaden Administration, which assumed administration of the realm in 2016.
