Home and Garden Specialist Retailers in Norway - New Market Report

TRENDS

The home has traditionally been a huge source of pride for Norwegians, with many happy to dedicate large parts of their incomes to home improvement, with this remaining a key driver of growth for home and garden specialist retailers in 2015. According to Forskning.no, 76% of Norwegians own their own homes, with many getting onto the bottom of the property ladder as soon as they have a sustainable job and income. Homeowners naturally allocate more money to the improvement of their homes than those who rent and this is certainly the case in Norway where the housing market is going from strength to strength. This has gone hand in hand with a growing trend for DIY, with better tools and materials, as well as an increasing number of DIY and home improvement shows on Norwegian television, convincing many consumers that they are able to carry out these tasks themselves.

Full Report Details at
- http://www.fastmr.com/prod/1113521_home_garden_specialist.aspx?afid=301

Competitive Landscape

IKEA Norge AS remained the leading company in home and garden specialist retailers in 2015 with a value share of 12% and sales of NOK6.5 billion. The Swedish furniture giant went from strength to strength in 2015, with the IKEA brand remaining popular with Norwegian consumers who continue to be attracted to its strong combination of decent quality and low pricing. In addition, the opening of a new outlet in Ringsaker led to stronger than usual sales growth and reinforced IKEA’s position at the head of the channel.

Industry Prospects

Interest rates reached their lowest ever level in Norway in 2015, with a base rate of 1% being offered by the Norwegian Central Bank at the time of writing. With oil prices remaining low, it is widely expected that interest rates will remain low over the forecast period, with the possibility of further cuts mooted by some financial experts. Among other effects on the Norwegian economy, this is expected to fuel further growth in the property market, with property ownership often more affordable than renting. In addition, lower interest rates mean more money in the pockets of Norwegian consumers and so it is expected that even greater portions of growing disposable incomes will be poured into the general maintenance and improvement of homes. This is expected to be the main driver of growth in home and garden specialist retailers over the forecast period, with the channel set to record a value CAGR of 1% at constant 2015 prices.