STOCKHOLM, July 25 (Xinhua) -- The Swedish Trade Federation predicts that up to 11,000 brick-and-mortar stores and 30,000 jobs could disappear over the next decade, Swedish News SVT reported on Thursday.
The Federation's 2019 "State of Commerce" report predicts that over the next 10 years a rapidly growing e-commerce sector and increasing international competition will lead to a loss of 50,000 jobs, particularly in the specialty retail sector. Over the same period, says the report, the grocery and convenience retail sector is expected to continue to grow, creating 20,000 new jobs - leaving net job losses at 30,000.
"It is a huge challenge for trade," said Karin Johansson, CEO of the Swedish Trade Federation.
Already, said Johansson, towns in Sweden are blighted by storefront closures. SVT writes that the report suggests Sweden's towns can expect to see more stores shutting up shop and staying empty, affecting local retail viability as well as real estate markets.
"Naturally, it's no fun to spend time in shopping centres with many empty storefronts," Johansson told SVT, adding "This is a challenge for a number of places today, and real estate owners there need to be very active to fill storefronts with other activities so that the rest of the traders won't be dragged down with them."
In 2018, e-commerce grew by 15 percent and accounted for 100 percent of growth in Sweden's specialty retail market, according to the report. While overall retail consumption is not expected to fall, e-commerce is predicted to carve out an even bigger share of the overall market.
To bolster Swedish retail against this global trend, Johansson pointed to the importance of improving trade conditions, citing lower taxes on labor and a stronger Swedish krona as two factors that could strengthen local goods and services relative to online competition.
Between 2011 and 2017, the number of physical stores in Sweden has decreased by almost 5,000. By 2030, up to a further 11,000 are expected to disappear, with brick-and-mortar retail expected to account for just 64-74 percent of total retail sales, according to the report. Of the remaining 26-36 percent, 21-26 percent is predicted to be made up of Swedish e-commerce, and 5-10 percent by foreign e-commerce.
