Cross-border trade continues to grow significantly
Many merchants and suppliers in Norway hoped that border residents would acquire new shopping habits after the covid pandemic, and shop more of their household budget at home and not travel so much to Sweden for cheaper food. Naturally, it didn't work out that way.
Consumers are rational and shop where it is cheapest, where they get the most value for money both in real terms and in retail experience. No wonder that Swedish merchants report a strong influx of Norwegian customers now that it is possible to travel freely, regardless of Corona restrictions. [i]
The economy is reasonably tight for many after strong price increases in Norway as in Sweden. But Sweden is still much cheaper than Norway for most food products, especially meat and dairy products.
Hence cross-border trade increased by 7.1 percent in 2023 and looks set to increase even more during 2024, according to recent figures from SCB.
In total, the border municipalities achieved grocery sales of almost 22.66 billion kroner last year, which is an increase of approximately 1.5 billion SEK or 7.1 percent compared to 2022.
Haparanda had the biggest change by far in 2023, with an increase of 17 percent (250 million kroner). The only municipality that did not increase its sales last year was Kiruna, which fell back by 3.5 percent. However, trade there has increased significantly during the first half of this year (11.7 per cent) compared to the corresponding period last year.
8.1 percent January to June 2024
In total, cross-border trade increased by 8.1 percent during the period January to June. This can be compared with the grocery trade for the whole of Sweden, which increased by 4.4 per cent.
Fri Köpenskap, a professional journal, has previously reported on SSB’s figures for the first half of the year. SSB’s data showed that cross-border trade with Norway increased by 12.9 per cent during the first half of the year.
SCB does not actually land at those levels. Their corresponding figure is a bit lower at 8.1 percent.
Only two border municipalities took a step back during the first six months of the year 2024 – Haparanda (-4.6 percent) and Tanum (-1.8 percent). However, they had big growth numbers inn 2023.
Strömstad a main destination
“Border trade is the largest in Strömstad and amounted to 8 billion kroner in 2023. Sales have just reached the level that applied before the pandemic,” says Daniel Lennartsson at SCB to Fri Köpenskap.
On average, Norwegians spent NOK 1,921 on each shopping trip across the border in the first six months of 2024. When we look more closely at the shopping basket, it turns out that we spent the most money on food and groceries.
Alcoholic beverages made up 14 percent of the shopping basket, of which approximately 8 percent consisted of wine and spirits, while approximately 6 percent were alcoholic beer and ciders. In addition, 5.7 per cent of cross-border trade went to snuff, and a similar proportion was spent on cigarettes and tobacco.
Soft drinks and mineral water are also popular goods among Norwegians in cross-border trade, and these made up 7.6 per cent of the goods basket. Chocolate and sweets accounted for 4.7 per cent of cross-border trade.
The composition of the basket is, so to speak, identical in the first half of 2023 compared to the first half of 2024, SCB reports.
Sources: SSB, Fri Köpenskap, SCB (Statistiska centralbyrån), NHH.
[i] The boarder restrictions lasted roughly from March 2020 to February 2022.
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