Headline: Norwegian Border Shopping Boom: A Blow to Local Economy, Warns Industry Group
Article:
Norwegian border shopping, a long-time habit among Norwegians, has surged recently, drawing concern from industry body Virke. According to a report, Norwegians spent a total of 9.35 billion Norwegian Kroner (NOK) across borders in 2023, with a staggering 17.9% increase in the third quarter of 2024 compared to the same period last year.
"This is revenue that could have created jobs, value-added, and tax income in Norway," said Bendik Solum Whist, director of Virke’s retail sector. "The current trend is essentially like throwing money over the Swedish border. Politicians should take note and address this issue."
While border shopping thrives, profit margins for Norwegian supermarket chains have been dwindling. High price increases, including a 4.2% yearly hike in November, have eroded profit margins for retailers. Despite the steep increases, Norway’s food price inflation has been on par with Denmark and lower than Sweden‘s.
Virke’s report reveals that during periods of peak price increases, retail margins have decreased. This means supermarkets earned less per item sold after accounting for costs. Although food prices in Norway have been high, they have remained competitive with neighboring countries.
As Norwegian consumers continue to flock across borders to shop, local businesses and economists call for action. The question remains: Will politicians heed the warning and intervene, or continue to watch as shoppers carry their purchasing power – and the Norwegian economy – over the border?
