Northern Europe on course for growth

2004 brought positive results for nearly all chains, with growing turnover. The economy in Norway, Sweden and Finland is growing considerably more strongly than in most European countries, and a positive trend like that of 2004 is expected this year too.
Scandinavian countries in figures in 2004(.pdf download)
The factors driving growth vary from country to country. Norway is benefiting from higher oil prices, which lead to a higher rate of employment and higher income levels. In Finland tax reductions have brought an increase in disposable income. And in Sweden, modest tax reductions coupled with low interest rates have made consumers more willing to spend on house-related products and have also led to an increase in new house building.
Sweden
Interest rates remained low in 2004, and the unemployment rate stayed at the expected level of around five per cent. There was a slight increase in new house building, boosting the building and DIY market. But results from companies serving both the trade and the consumer market show that whereas spending by private consumers rose, the level of spending among the professionals was on a par with last year. The market for renovation of private dwellings is twice as big as the market for private house construction.
The low-price Swedish chain Byggmax opened six stores last year.
Clas Ohlson opened three new stores in Sweden during 2004. Sales for the first nine months of the year for stores in Sweden, Norway and Finland came to € 42 mio (SEK 378 mio).
K-Rauta increased its turnover in Sweden by 17.4 per cent to € 92 mio and now has a market share of around four per cent. The Finnish company’s long-term goal is to expand its market share to 10 per cent with up to 25 stores. Plans are in hand to open three new stores in the next twelve months.
The low-price chain Byggmax is continuing to expand and is now accepted by both professionals and private consumers. It has increased its number of outlets in the last year by six to 25 stores. Owing to the success of its Cheapy discount concept Danske Trælast intends to increase the number of stores from eight at present to around 30 in the next two to three years.
Finland
Thanks to an inflation rate of below 0.5 per cent and tax cuts, the disposable income of consumers in Finland has risen. The unemployment rate reached 8.8 per cent.
DIY retailers in Finland in 2004(.pdf download)
The DIY chains can look back on a year that lived up to expectations. Market leader Rautakesko with its…