What: Steen & Strøm’s tax-free sales surged 27% in 2025, driven by international shoppers choosing Oslo over London due to favorable VAT policies.

Why it is important:  The development underscores Oslo’s emergence as a leading luxury retail destination, benefiting from policy changes that have disadvantaged London.

Steen & Strøm has reported a 27% surge in tax-free sales for the first eight months of 2025, marking its fourth consecutive year of growth. This robust performance is attributed to the increasing appeal of Oslo as a luxury shopping destination, particularly among international shoppers who are now favouring the Norwegian capital over traditional hubs like London. The abolition of tax-free shopping for tourists in the UK has redirected both international and British consumers to cities where VAT-free purchases remain available, with Oslo’s strategic positioning and service innovation proving decisive. Chinese shoppers have emerged as the most significant international segment, followed by visitors from the US, UK, Thailand, and India, highlighting the global nature of this shift. Steen & Strøm’s investment in a new tax-free refund service has further enhanced its attractiveness, quickly establishing the store as a central hub for VAT reclaims in Norway. These developments reflect a broader transformation in European luxury retail, where policy, consumer behaviour, and targeted investment are reshaping competitive dynamics. 

IADS Notes: Steen & Strøm’s exceptional growth in tax-free sales during 2025 mirrors a wider European trend, as highlighted in Forbes (March 2025), with Oslo’s favorable tax policies and retail investments drawing international shoppers away from London, which has faced a £640 million revenue loss due to the end of tax-free shopping, as reported by Retail Week (February and July 2025). Chinese travellers, now a major force in Oslo’s luxury retail scene, exemplify the global shift in consumer flows and preferences. The store’s strategic innovations and Oslo’s competitive positioning have enabled it to capture demand that previously favoured other European capitals, illustrating how policy and investment are redefining the luxury retail landscape (Forbes, March 2025; Retail Week, February and July 2025).

Steen & Strøm’s tax-free sales surge