Nicotine segment is the exception to a declining Swedish e-commerce

2023-05-29 12:00

The Swedish Retail Federation’s (Svensk Handel) e-commerce indicator for April shows a continuous decline in e-commerce turnover. Measured in Swedish consumers’ e-commerce from only Swedish operators, the turnover decreased by 2 per cent compared with the same month last year and by 5 per cent if e-commerce from abroad is also included. However, for the first four months of 2023, January – April, the turnover for the segment of nicotine and tobacco products category grew by 47 per cent compared to last year.

According to the report, e-commerce turnover experienced a continued decline in April, like in March. Swedish e-commerce in 2023 has developed somewhat weaker than in 2022 and much weaker than in 2021. However, the sales development in volume is significantly weaker, which is not fully reflected in current prices due to the continued high inflation.

“We see another weak month for e-commerce, and considering inflation, it is also significantly weaker than what is shown by the reduced turnover. Nicotine and tobacco products are with a clear margin this year’s winner so far”, says Per Ljungberg, Head of Innovation at Svensk Handel.

Only four categories demonstrated growth: nicotine and tobacco products (47 per cent), pharmaceuticals (6 per cent), clothing and footwear (5 per cent), and car, boat, or motorbike accessories (1 per cent).

“The overall development of the e-commerce sector is unfortunately not surprising with the challenges facing retailers and consumers with high inflation and tougher economic times. At the same time, our segment drives the growth in e-commerce, so being from lower levels. The growth shows the segment’s untapped market potential and, more importantly, makes less harmful nicotine enjoyment available for people, benefiting public health”, says Markus Lindblad, Head of External Affairs.

Svensk Handel is a Swedish trade- and employer organisation that engages in wholesale, retail and e-commerce trading issues. Every month Svensk Handel conducts an interview-based study to report how Swedish e-commerce has developed during the period.

Access the full report (in Swedish) here.

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