What: Oslo emerges as a new international luxury shopping destination, driven by currency devaluation and climate change effects.

Why it is important: The success of Steen & Strøm demonstrates the potential for traditional department stores to thrive through adaptation and investment.

Steen & Strøm, the world's oldest continuously operational luxury department store in Oslo, reported a 14% sales growth in H1 2024. This growth is attributed to Norway's tax-free shopping policy and the 'coolcationing' trend, where tourists seek cooler destinations due to extreme heat in traditional holiday spots.

The Norwegian Krone's devaluation has made the country more accessible to international tourists. Tax-free shopping at Steen & Strøm increased by 32%, with top visitors coming from the US, China, Britain, Australia, and Indonesia.

Steen & Strøm, part of Oslo's Promenaden fashion district, has benefited from significant investment by Mark Capital Management. Recent improvements include a $33 million refurbishment in 2021 and the opening of Norway's first Tech Hall, designed to engage the creative community.

The store's e-commerce sales surged by 318%, with plans to expand its online brand offerings. This success reflects broader trends in luxury retail adapting to changing consumer preferences and global conditions, potentially reshaping the European luxury shopping landscape.

Sales Soar At Norway’s Steen & Strøm As Global Shoppers Flock To Buy Tax-Free