The tax-free travel chain, Travel Retail Norway, increased its turnover to more than NOK 5.5 billion last year. However, a weak krone contributed to the poorest result in ten years.
It sold for NOK 5.5 billion in 2018, and the company delivered an operating profit of NOK 193 million.
‘’It was a stable year, where some trends continued from 2017’’ said
Travel Retail Norway chief, Tore Hov to E24 news.
The chain operates duty-free stores at the country’s largest airports and has increased its turnover every single year since its inception. Last year was no exception.
Although the figures are still strong, the result is the lowest for the company since 2008. The reason is the weak krone against the euro. Travel Retail Norway buys its goods in euros, which has a profound effect on the result as the euro has never been more expensive measured against the krone than it was last year.
When asked whether they want to raise prices if the krone remains weak in the future to increase profitability, Hov responded that ‘’we have no plans for it now. We want everyone who travels to and from Norway to buy here rather than abroad, so then we must have
Sales of alcohol have declined, while perfumes and other beauty products have increased.
© NTB Scanpix / #Norway Today