What: Norway's Steen & Strøm department store achieves record-breaking 122% growth in tax-free shopping, with Chinese tourists now representing 16% of all tax-free sales, driven by strategic retail development and direct flight connections.

Why it is important: The dramatic growth in tax-free shopping at Steen & Strøm demonstrates how traditional department stores can successfully transform into international luxury destinations through strategic adaptation and favourable tax policies, particularly as global shopping patterns shift away from traditional luxury capitals. Steen & Strøm, Norway's prestigious department store, has achieved unprecedented success in tax-free shopping with a remarkable 122% year-over-year increase. The store's performance in 2024 was exceptional, building on an already record-breaking 2023 with overall sales growth of nearly 7%. Chinese tourists have emerged as a significant driver of this success, now accounting for 16% of all tax-free sales, marking a 64% increase in their contribution. The store's strategic location in Oslo's Nedre Slottsgate, alongside luxury brands such as Bottega Veneta, Chanel, and Louis Vuitton, has strengthened its position as a premium shopping destination. The upcoming direct flights from Beijing to Oslo by Hainan Airlines are expected to further boost Chinese tourism. The store's success is particularly noteworthy as it benefits from Norway's competitive tax-free shopping environment, while other European destinations like the UK have seen declining tourist spending following the removal of VAT rebates.

IADS Notes: The remarkable 122% surge in Steen & Strøm's tax-free shopping performance builds upon the momentum seen in September 2024, when the store reported a 32% increase in tax-free sales. This growth aligns with Oslo's broader transformation into a luxury retail destination, evidenced by the store's strategic investments in new concepts and technology. The significant rise in Chinese shoppers' contribution, now at 16%, reflects broader trends identified in November 2024, where research showed 95% of Chinese travelers integrating shopping into their travel plans. While European luxury retail has been recovering since May 2024, with strong performance from US and Middle Eastern tourists, Steen & Strøm's success is particularly noteworthy given the competitive advantage created by Norway's tax-free shopping policy, especially when compared to markets like London, where the abolition of tax-free shopping led to substantial revenue losses.

Tax-free shopping more than doubles at Norway’s Steen & Strøm