Distribution Networks in Sweden
Types of Outlet
- They sell foodstuffs and non food products.
Coop Norden, ICA Grupp
- Mainly for food. They sell products of distributors' own brands or no brand at all. People prefer them for their discount prices.
- Specialized hypermarkets
- Hypermarkets specialized in one family of products.
- Shopping malls
- Located on the outskirts of towns.
Evolution of the Retail Sector
- Growth and Regulation
- In 2004, the Swedish retail trade reached 45.2 billion EUR, that is a growth of 3.3% in comparison with 2003. Generally speaking, Sweden has followed the same pattern of evolution as other Western countries over the last 20 years, i.e. the appearance of huge shopping malls located on the outskirts of towns, whose growth is to the detriment of the retailers situated in the city center. Distribution remains very structured and dominated by a few large groups, but there are a large number of specialized retailers offering more top of the range goods. The Swedish market often serves as a bridgehead for reaching the Scandinavian markets and the Baltic countries. Many European companies are present in this competitive market.
- Market Shares
- Swedish distribution of consumer goods is very structured even though there is still a large number of specialized retailers. Food distribution, for example, is concentrated around 3 groups:
- Ica Sveridge AB ( Ahold group) 1883 outlets.
Axfood AB, 883 outlets, it is specialized in "soft discount", i.e. very large discount stores.
Coop Sveridge AB(KF), 879 outlets, it is losing market share.
But a new group has appeared, the Bergendalhs group, 139 outlets.
The non-food sector is dominated by Swedish groups mainly ( H&M in clothing or Ikea in furniture). However, new foreign brands are setting up progressively in Sweden ( Mango, Zara in clothing).
- Organizations in the Retail Sector
Svensk Handel (Swedish Trade Federation)
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Normally, an exclusive agent or distributor is appointed to cover the Swedish market. Swedish agents/distributors often represent several foreign firms. A visit to the market is the best way to appraise the relative merits of prospective agents/distributors
U.S. Commercial Service Poland on 30 Mar 2010 related to Distribution Networks in Sweden
Find the related Swedish companies with Kompass:
U.S. Department Of Commerce, Sweden