Tax-Free Shopping More Than Doubles At Norway's Steen ⁘ Strøm

Source: Visit website

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Norway's high-end department store Steen ⁘ Strøm had its best-ever year in 2024 with sales up by almost 7% over what was already a record year in 2023. The main driver was an international rush for tax-free shopping where revenue spiked by 122% year-over-year.

Global luxury shoppers who regularly move between Europe's most fashionable thoroughfares in Milan, Paris, and London are increasingly turning to the Norwegian capital for their shopping needs as seen in the first half of 2024. There is still some way to catch France, Italy, and Spain which remain the top markets for in-store tax-free shopping in continental Europe—they have a combined share of 43% of the market based on data from tax refund specialist Global Blue.

The U.K. no longer features as one of these markets following the decision by the British government to end VAT rebates for tourists. This may also be playing a part in the rise of Oslo and other Northern European capitals as new prestige shopping destinations to replace London.

The traveling rich are always looking for places to shop tax-free. Steen ⁘ Strøm—like Selfridges and Harrods in London, or LVMH's La Samaritaine in Paris—is a one-stop shop for luxury lovers, with more than 1,000 brands across nine floors.

The Oslo department store, founded in 1797, is claimed to be the oldest in the world as a continuously running business. It is located on Nedre Slottsgate, now home to some of the most valuable non-automotive luxury brands in the world including Bottega Veneta, Burberry, Chanel, Dior, Gucci, Louis Vuitton, Moncler, Prada, and Saint Laurent.

This has been attractive to the Chinese in particular. The lack of international travelers from China, and their reduced spending post-Covid, has been a curse for the global duty-free industry in terms of per-head purchasing according to Kearney.

In contrast, Steen ⁘ Strøm has benefited, with Chinese shoppers now accounting for 16% of all tax-free sales, marking a 64% increase on their contribution in 2024 (see table below). The numbers are likely to grow again this year following the decision by Hainan Airlines to restart direct flights from Beijing to Oslo from March 22 as a seasonal route and the fastest connection between the two countries. Flights had been suspended since the pandemic.

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