Economic report for Sweden

The Swedish individual shop fitting Industry
ISO Congress 10th of May 2008.

For some reason there is no Swedish Shopfitting Association, but a number of important and internationally oriented fixture system manufacturers and shopfitters/interior contractors.

We are happy to count as direct ISO members Expedit, Hestra, Pelly and Pido, as well as indirect members such as ITAB (via Norway, Germany), New Store Europe (Norway, Germany) and ROL (Germany). The 3 last mentioned being very large companies in their respective niches of the shopfitting industry. Particularly ITAB after the acquisition of the Hansa Group must be considered among the to 5 largest in Europe. The NSE group with 2 manufacturing plants in Sweden is totalling 120 mio Euro on European basis, and ROL (turnover undisclosed) is specialized, and rather dominating in the European service station business, followed by the considerably smaller Planova, Denmark.

On the sideline, another World leading company targeting the Retail trade is HL Display, sales are estimated to another 120 mio Euro, and like ITAB they are on the stock exchange.

Consolidation and mergers are in Sweden and Scandinavia like everywhere else, reducing the number of shopfitting companies, and thus the potential member base of ISO.

Retail is good in Sweden, and some Swedish shopfitters benefit from the internationalisation of successful Swedish retailers, such as H&M and IKEA (Yes, IKEA buys shop fixtures too!), that bring on their store concepts from the home base into the whole wide world.
Retail business has been extremely good in Sweden the past years, but like in the rest of Europe, with tough competition, and there are clear indications of a future, downward tendency.

Like everywhere else, energy prices are soaring and the food prices are increasing.
A result is increasing investments in sustainable energy- and heating systems, booming sales of economic and “green” cars (small gas savers, hybrid and Ethanol driven cars) but on the other hand this may move money away from the retail trade.

Inflation (March 2008) is 3,2 % which is a 3-year high, but still surpassed by the 3,8 %average of 27 countries in Europe.
Growth has been around 4 % the past 2 years, and is now expected to be 2-2,5 receding the next 2 years (Europe has just reduced expectations from 1,8 to 1,7% growth in 2008).
Interest has increased, real estate financing is up from 3 to 5-6 % reducing the purchasing power of the average Swedish family, and moving savings from the stock market to banks and funds..
Present market situation. Also the Industry expect a downswing, reducing the “purchase index” that is considered a mirror of the state of the market, from 54,7 in March to 50,1 in April.

Conclusion: Continuing good business, but trade conditions on a lower level than recent years.

Preben Bailey
ISO Secretariat Sweden, 5th May 2008

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