Christmas became a shopping holiday for Norwegians, who did not seem alarmed by the announcements of tighter economic times.
This year we traded for almost NOK 100 billion at Christmas, which is 15 per cent more than the previous normal year 2019.
Now there may be a decline, because in 2023 there will be both less purchasing power and more expensive goods.
– Everyone expects 2023 to be bad
TV 2 has spoken to several of the largest clothing chains in Norway, and the owner of the chain Zavanna says they now have to increase prices by 10 per cent.
This is in addition to the price increase that took place already in the autumn.
CLOTHES: Chairman and owner of the Zavanna chain, Jens Bo Grønne. Photo: Private
– The rent and electricity prices significantly affect our level of expenditure. We are committed to that, and we have to swallow that pill, says Zavanna owner Jens Bo Grønne.
He says everyone expects 2023 to be a bad year financially.
– We have already seen a great reticence among customers in the autumn that was. With higher electricity prices and increased interest rates, purchasing power has decreased markedly, so we do not expect an increase in turnover this year.
INCREASE? The clothing store Zavanna in central Bergen is just one of many businesses that have had good sales in 2022. Now the question is how the coming year will be. Photo: Isac Skjevik Kvello / TV 2
I think the situation will last
Both the war in Ukraine, the electricity crisis in Europe and the corona pandemic are cited as reasons why people have to fork out extra for a new shirt this year.
– It’s not that we in Zavanna charge more on the prices from consumers, but we want to be here in the future and offer clothes to our customers. Then we have to cover the price increase in the market, says Grønne.
The clothing store owner still has faith that the chain’s more than a hundred stores will continue when the economy has stabilized again.
– We run a healthy business as of today, and have the strength to resist in the years to come. We are optimistic, but think there will be tough years ahead. This will not go away in a few months, and we expect it to be two or three years with tougher prospects.
SALES: With rum Christmas and New Year also come the offers. In the new year, however, prices will increase. Photo: Isac Skjevik Kvello / TV 2
– Little doubt
Also Bestseller, the company behind clothing stores such as Jack and Jones, Only and Vero Moda, informs TV 2 that they will have to increase their prices in the coming year.
“It is difficult to say exactly what the general price increase will be, but there is little doubt that there have been and will be price adjustments on certain products,” says managing director Øyvind Hauge.
Increased costs in connection with logistics, raw material prices, wage growth and investments around sustainability are a reality.
– This is something that will naturally affect our stores’ cost structure, but at the same time it is crucial for us that we can continue to offer our customers “value for money”.
CHAIN: Vero Moda is one of several stores owned by the company Bestseller. Photo: Heiko Junge / NTB
Lindex: – Adjusts continuously
The fashion chain Lindex also confirms that they have increased their prices, just like the rest of the industry.
– For purchases until 2023, we have a higher price situation and have therefore also adjusted our prices. Purchase prices are affected by many external factors, both raw materials, shipping and currency, and here we continuously monitor developments, says sales manager Nina Haugen at Lindex.
She says it is difficult to specify exactly how big the price increase is, since this depends on each individual product.
– In the event of increased purchasing costs, we continuously assess and adjust our prices accordingly. We try to reduce other types of costs through effective cost management
HANDLER: Many Norwegians spent a lot of money on clothes in 2022. Now it is predicted that there will be less in the coming year. Photo: Frank May
Work: – Clothes have been reasonable
Specialist trade director Bror William Stende in Virke tells TV 2 that the price increase is exactly as expected.
– Clothing has been relatively affordable, and there has not been any particular price increase on this in memory. Therefore, this has been reasonable for most people.
NOT SURPRISED: Director of trade in Virke, Brother William Stende Photo: Heiko Junge / NTB
Although prices are now increasing, he reminds us that clothes are still relatively cheap compared to other goods.
– Transport, enormous growth in rental prices and sky-high electricity prices are some of the reasons why this increase is now happening. Although there have been increases throughout 2022, this has not affected the consumer until now, says Stende.
