World’s oldest continuously operational luxury department store, Steen & Strøm in Oslo, has seen a 14% growth in sales in H1 2024, which has been driven partly by Norway’s tax-free shopping policy and the phenomenon of ‘coolcationing’, with unusually hot weather driving tourists away from traditional holiday spots in southern Europe.
Steen & Strøm (S&S), the world’s oldest continuously running department store, has recorded a 14% increase in sales on a yearly basis to June 2024. In Q1 2024, the luxury department store celebrated its best-ever quarter, with sales increasing by 14% in Q1 2024 compared to Q1 2023.
Sales from tax-free shopping are up 32% on a yearly basis, signalling a significant increase in the number of wealthy international tourists flocking to Norway’s capital.
The top five international visitor country groups in H1 2024 included the USA, China, UK, Australia, and Indonesia. A record number of visitors from Saudi Arabia and the UAE are also expected in August.
Norway operates a ‘tax-free’ shopping policy, whereby international visitors can claim the tax back on the money they spend on shopping. Given the cost of high-end goods, this is particularly relevant for luxury shopping destinations such as S&S.
S&S has also benefited from ongoing investment by owners MARK Capital Management and Promenaden Management – which has further attracted shoppers by diversifying the store’s product and service offerings, as well as the new provision of experience-led shopping experiences.
For example, the department store opened Norway’s first and only ‘Tech Hall’ earlier this year, a contemporary fashion and streetwear offering. Set over 7,500 sq ft and featuring over 500 brands, the Tech Hall has been conceptualised as a creche for Norway’s creative community through the provision of a blend of first-class retail offerings and a regular program of events featuring workshops and masterclasses.
The department store’s e-commerce sales also significantly increased over the last year, with online sales revenue growing by 318%. This was helped by the addition of 49 new brands to its consumer offering of 91 brands in total, with a target of over 200 brands to be added this year.
David Wilkinson, Steen & Strøm’s Executive Director at Promenaden Management, said, “Steen & Strøm has been the beneficiary of an influx of international luxury shoppers coming to Oslo, as travellers from around the globe increasingly look to the city as one of Europe’s most significant high-end shopping destinations. Norway’s tax-free shopping policy has provided an additional incentive.
“We are also increasingly seeing extreme weather patterns and heatwaves influence travellers’ destination choices. Oslo is one of several Scandinavian cities benefitting from consumers opting for a relatively cooler, Northern European climate during the summer travel months.
“However, we also worked hard to capture this heightened interest in Oslo as a shopping and travel destination by investing significantly in improving our offering. We have found that retail shoppers are increasingly attracted to an experience-led shopping experience, and our new tech hall, with meeting places, an events program, and working areas, is designed to encourage community engagement.”
Steen & Strøm first opened in 1797. The 12,600 sq. m, nine-storey building underwent a €30m refurbishment in 2021, including reconfiguring the downstairs Beauty Hall and a new entrance on Karl Johans Gate. Mont Blanc, Dior Beauty and LOEWE have all recently become part of the 1,000+ brands at Steen & Strøm.
The growth in sales follows a luxury boom in Norway and an influx of high-end brands to Oslo, led by MARK Capital and Promenaden Management. These companies own the 23,000 sq.m area of buildings—including S&S—in Oslo’s shopping district, known simply as ‘Promenaden’.
This includes Nedre Slottsgate, the street on which S&S is located, which is known as the ‘Bond Street’ of Oslo. It is home to nine of the ten most luxury brands in the world; Gucci, Bottega Veneta, Burberry, Saint Laurent, Moncler, Chanel, Louis Vuitton, Prada and Dior all occupy premises on the street, with these brands being introduced to Nedre Slottsgate by Promenaden Management, which assumed management of the area in 2016.
About MARK Capital Management
MARK is a privately held real estate investment management firm focused on the opportunities presented by urbanisation and technological change. In addition to advising closed-ended, value-add funds, the firm has a multi-platform strategy that enables institutional investors to benefit from structural changes in real estate. MARK manages a diversified portfolio spanning residential, offices, inner-city, luxury retail, and last-mile logistics.
About Promenaden Management
Promenaden Management manages and leases prime retail and commercial buildings in central Oslo. It has been managing the Promenaden portfolio for more than a decade and provides unique insight and expertise in the Norwegian market. It focuses especially on value-adding initiatives, with the ultimate goal of creating Norway’s most exciting luxury destination, curating unique customer experiences.