Svensk Handel's Trade Barometer for November 2024 shows a welcome increase in confidence in the future among Swedish traders. At the same time, many Swedish trading companies continue to struggle against headwinds with high costs and reduced purchasing power among households.
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After several years of high inflation and sharp interest rate increases, households' purchasing power has taken a big hit, which has negatively affected trade. Swedish Trade still sees signs of relief, where the recent interest rate cuts and a slowing inflation give some reason for optimism in the long term.
'It is gratifying that faith in the future is growing. At the same time, we must not close our eyes to the serious situation: Many Swedish trading companies are fighting for their survival, with, among other things, high rents and consumers who continue to hold tight to their wallets,' says Sofia Larsen, CEO of Svensk Handel.
The light at the tunnel is a long way off
The overall futures indicator for retail trade rose to 98.2, with profitability expectations increasing the most. Rare goods trade continues to improve, but remains below the neutral 100 mark, with a futures indicator of 94.3. For the wholesale trade, the development is more subdued, although sales expectations rose significantly.
'After several years of hard trials, it is crucial that the household finances are stabilised. Unfortunately, it will probably be well into next year before it is noticeable. The results show that trading companies are still pessimistic. For many, the situation is still very difficult, but we hope that this year's Christmas shopping will provide a much-needed boost,' says Sofia Larsen.
Trade continues to be under heavy pressure
Despite a certain improvement in faith in the future, the bankruptcy figures now show that many companies cannot cope with the high costs and reduced sales. With more bankruptcies so far this year than in the previous three years, the situation remains critical. Especially for SMEs.
'We must not underestimate the challenges of trading companies. It is positive that the bankruptcy rates - even if they are at a high level - have not continued to increase further, but we must continue to work to create better conditions for trade. This includes reduced costs, fair competition conditions and measures that strengthen households' purchasing power,' concludes Sofia Larsen.
More information:
Svensk Handel
www.svenskhandel.se