Steen & Strøm has benefited from ongoing investment from Mark Capital.
The world’s oldest continuously operational luxury department store, Steen & Strøm in Oslo, witnessed sales growth of 14% in H1 2024. The increase was partly driven by Norway’s tax-free shopping policy and the phenomenon of ‘coolcationing’; where tourists opt for cooler climes instead of the traditional holiday spots of southern Europe which have become a little too hot.
Norway’s currency has been steadily devaluing over the past decade in a yoyo fashion. One dollar bought 6.4 Norwegian Krone in September 2024. Yesterday it bought 10.66. The country—known almost everywhere in Europe for being excessively pricey—has become more accessible since the Covid pandemic.
Helping Norway’s travel wave has been a warming planet. Searing heat—and regular fires—felt in multiple summer vacation destinations like the Mediterranean has led to a trend called ‘coolcationing’ where more vacationers are diverting to places like Scandinavia. There, the tourism and travel industry added an estimated $124 billion to the regional economy in 2023, up 6% year-over-year.
Tax-free shopping to June shot up by 32% at the 227-year-old landmark as wealthy international tourists flocking to Norway’s capital spiked. The first quarter was also the best yet for the department store.
The top five international visitor nations were the United States, China, Britain, Australia, and Indonesia. Meanwhile, a record number of visitors from Saudi Arabia and the United Arab Emirates is expected to bump up August numbers when they are collated.
“It’s pretty cool that Oslo is becoming a new shopping destination internationally. That has basically never happened before,” said Ida Elise Eide Einarsdóttir, the fashion editor of Norwegian lifestyle magazine KK in a piece for the state-funded VisitNorway website.
Tax-free incentive
Unlike the United Kingdom, which removed tax-free shopping under its previous Conservative government, Norway’s tax-free policy allows international visitors to claim tax back on the items they buy. This is particularly relevant for luxury shopping destinations such as Steen & Strøm which anchors Oslo’s Promenaden fashion district. Here, bigger savings can be made on high-end items.
David Wilkinson: “Global travelers are increasingly looking to Oslo as one of Europe’s most … [+]
The district covers parts of Nedre Slottsgate, Øvre Slottsgate, Prinsens Gate, and Akersgata and houses a roll-call of famous names from Chanel, Gucci, Hermès, Louis Vuitton, and Saint Laurent, to Bottega Veneta, Burberry, Dior, Prada and Rolex, as well as contemporary labels like Acne Studios, Lululemon, Moncler, and Isabel Marant.
David Wilkinson, Steen & Strøm’s executive director at Promenaden Management, the company managing the retailer, said: “Steen & Strøm has been the beneficiary of an influx of international luxury shoppers coming to Oslo. Global travelers are increasingly looking 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.”
Regaining its relevance
Promenaden Management is wholly owned by privately held London-based investment group Mark Capital Management which also runs retail operations like The Whitely and Borough Yards in London. Mark’s portfolio is diversified, spanning residential, offices, inner-city, and last-mile logistics, in addition to luxury retail.
Steen & Strøm has benefited from ongoing investment from Mark Capital, helping it diversify its product and service offerings and introduce experience-led shopping. In 2021, the building underwent a $33 million refurbishment and earlier this year, the retailer opened Norway’s first and only Tech Hall as well as a contemporary fashion and streetwear offering.
Steen & Strøm’s Tech Hall has been designed as a meeting point for Norway’s creatives.
Set over 7,500 square feet and showcasing over 500 brands, Steen & Strøm’s Tech Hall has been conceptualized as a hub for Norway’s creative community offering a changing program of workshops and masterclasses.
Wilkinson commented: “We are working hard to capture this heightened interest in Oslo as a shopping and travel destination by investing significantly. We’ve found that retail shoppers are increasingly attracted to experiences, and the Tech Hall, with events program and working and meeting areas, are designed to encourage community engagement.”
The department store’s e-commerce sales also surged in the past year, with revenue rising by 318%. This was helped by the addition of 49 new brands to take the online offer to more than 90 in total. A target of over 200 this year has been set, roughly a fifth of the 1,000+ brands now found in Steen & Strøm’s nine-floor physical space.