Recession for clothes shops in Norway

Illustration.Clothes.Photo: Norway Today Media

Several of the major clothing chains in Norway are experiencing recession.Minister for Digitalisation, Nikolai Astrup of Høyre (H),said the chains have to change their strategies.

Turnover in Norwegian clothing stores has fallen by over NOK 900 million, about 2.9%, to NOK 30.9 billion,wrote Dagens Næringsliv newspaper.The figures are taken from a new report from the industry organization, Virke.

The decline hit four of the six largest chains last year, including Lindex and H&M.

‘’Large parts of the industry are standing still or going backward’’ said industry director, Bror William Stende, of trade,fashion and leisure in Virke.

A bankruptcy wave,weak margins and fierce competition from online players created a decline in Norwegian retail that worries Astrup.

‘’Parts of the industry are struggling and have to adjust.Either they have to change their thinking or they could disappear.It is important that concepts are adapted to a new everyday life.The stores have a different function than they had before’’ he said.

With a sales failure of NOK 200 million,the Varner group came out worst last year.The group owns the chains Volt,Dressmann, Cubus, Bik Bok, Carlings, and Urban.

© NTB Scanpix / #Norway Today