Retail confidence in Sweden remains subdued, with expectations for the coming quarter still mired in pessimism, according to the latest Trade Barometer released by Svensk Handel (Swedish Trade Federation). The findings highlight continued economic uncertainty and fragile consumer purchasing power as central concerns for the sector.
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Although grocery retail showed signs of resilience, rising by 3.6 units to an index value of 93.5, non-durable goods and wholesale sectors saw minor declines of 0.6 units, landing at 90.1 and 92.0 respectively. All segments remain below the neutral threshold of 100, signalling ongoing negative sentiment regarding future sales, profitability, and staffing levels.
'Trade is an industry that depends on strong purchasing power. We hear from our member companies that consumers are still cautious. This is hardly surprising given the uncertain global situation, and not least the fact that many are still struggling financially. It is of utmost importance that the government continues its work to strengthen households' purchasing power,' said Sofia Larsen, CEO of Svensk Handel.
A glimmer of hope emerged from last week's announcement by the Riksbank to reduce the key interest rate by 0.25 points. While welcomed, the measure is seen as overdue and insufficient on its own to reverse the sector's prolonged downturn.
'Unfortunately, the retail industry has been characterised by pessimism for over three years, and it can be stated that otherwise viable companies have been forced to close their operations as a result of the extremely tough years. Retail is one of the largest employers in the business sector, and we want to continue to be so. But it is necessary that our companies are given the best possible conditions to operate and grow,' Larsen added.
The industry continues to call for more comprehensive policy support to restore confidence and spending, amid concerns that structural damage from the past few years may deepen without intervention.
For further insights, the full June 2025 Trade Barometer report is available for download via Svensk Handel's website.
More information:
Svensk Handel
www.svenskhandel.se