Swedish e-commerce saw an unusually sharp downturn in May, with total sales dropping by 24 percent compared to the same month in 2024, according to Svensk Handel's latest E-commerce Indicator. The report reveals a broad-based decline across categories, indicating persistent consumer caution and reduced purchasing power.
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However, the steep year-on-year fall must be understood in context. 'Compared with 2024, May appears weak, but the outcome should be understood in relation to the exceptionally strong result last year. That sales would not surpass the high level of May 2024 was expected. The worrying part is that last year's entire increase is now wiped out, and that the result even falls below the weak level of 2023,' said Per Ljungberg, Chief Innovation Officer at Svensk Handel.
In May 2025, online retail turnover reached SEK 11.2 billion, the lowest figure for May since the indicator's inception in 2020. The decline stems from both a reduction in the number of consumers shopping online and a decrease in average spending. The average spend per consumer dropped to SEK 1,951 from SEK 2,545 a year earlier.
'The chilly weather may have dampened sales of, for example, fashion and seasonal goods, but the trend is broader than that. Almost all major product categories show negative figures, and households are shopping both less frequently and for smaller amounts. It is clear that many consumers remain cautious in their purchasing decisions,' Ljungberg added.
While most sectors saw declining figures, building materials offered a glimmer of improvement, showing the most growth when compared to the first five months of 2024 after a prolonged slump. Pharmacy products were the only category to report increased turnover in May. Furniture sales, however, continued to struggle with significantly reduced demand.
The share of consumers engaging in online shopping fell to 69 percent, down from 71 percent in May 2024. Overall, e-commerce turnover for the period January to May 2025 totalled SEK 59.3 billion, a 5 percent decrease year-on-year.
'It is noticeable that consumers' purchasing power remains relatively weak. Last week's interest rate cut was therefore welcome. However, it is important to emphasise that more cuts are needed to strengthen purchasing power, which would of course benefit Swedish e-commerce companies' said Ljungberg.
More information:
Svensk Handel
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