It helps to renovate

Despite the financial crisis that spread right around the world, northern Scandinavia has not been hit as hard as many other countries. One reason for this is that Sweden offers a tax deduction when using labour for house renovations. The government has made the deduction into a two-way benefit. In short, half of the cost of labour up to € 4 500 per year and person is deducted directly by the builder. He then gets this sum within 14 days from the government. Firstly this government action encourages people to start renovations that would otherwise be done only some years later. Secondly, the tax deduction has meant that the number of unemployed in the building sector has been held at a low level, plus more money is handled as “white” money, which in the end gets more tax revenue into the state coffers. Sweden’s GDP for 2010 will be 6.9 per cent up on the year before. However, analysts say that GDP will go down this year. Bauhaus has 15 stores in Sweden, and they are still looking for new locations in the middle and south of the country. Danish XL-Byg, one of the largest chains in Scandinavia, has bought over 90 stores in Sweden between the end of 2009 and now. XL-Byg stores in Sweden, which are nearly all members of the Byggtrygg purchasing organisation, focus on building supplies for both private customers and building professionals. Another Danish company, Bygma, is doing the same; it now owns 9 stores, with an emphasis on the north of Sweden. Interpares, one of the main member-owned purchasing organisations for DIY and building materials, has lost more than 35 members this year. Clas Ohlson has not had a good year so far. In the first quarter of the current financial year sales rose by three per cent, but the final result was a 15 per cent minus. The company’s expansion plans are continuing apace. Contracts were signed at the beginning of December for two new stores in Finland. The locations are St Michel and Hyvinge, and the openings are planned for June 2011. The company has 3 450 employees in five countries and buys products from 600 manufacturers throughout the world. Twice a year the company publishes a catalogue with a print run of 5.5 mio. Clas Ohlson is quite an old company. It started out in 1918 as a mail order company, and around two per cent of annual turnover still comes from its mail order business. Since it was launched in 1993 the Swedish company Byggmax has become a chain that has experienced much growth in Sweden, Norway and Finland…