Grocery sales fall sharply

Published December 23, 2024 at 2:55 p.m.

Economy. Svensk Handel's latest Trade Barometer shows that trade is ending the year with continued major problems, especially in the grocery trade where the future indicator has fallen sharply. Despite small glimmers of light, the industry remains pessimistic about the coming year.

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The future indicator for the grocery trade fell by 5.8 units to 96.3, which points to major difficulties for many companies.

The retail and wholesale trade noted minor improvements but are still below the neutral value of 100.

– The grocery trade's large loss shows that the situation for many companies is critical. After years of high interest rates and increased costs, many households are still cautious with their spending, and this is hitting trade hard, says Sofia Larsen, CEO of the Swedish Chamber of Commerce, in a statement.

Profitability expectations in trade remain weak, even though households are showing some optimism for the future. According to Sofia Larsen, the Riksbank's latest interest rate cut provides some hope, but according to her, significantly more is needed to save trade.

“If we do not get consumption up to speed, Swedish jobs and companies are at stake. The interest rate cut last week was a step in the right direction, but we had hoped for a more proactive Riksbank. In addition, the government must continue its work to strengthen households' purchasing power. It is through consumption that we will get out of the recession,” says Sofia Larsen.