Promenaden and Steen & Strøm in Oslo

Luxury might be hitting a soft spot internationally, but don’t tell that to the folks who manage the prestige industry in Oslo, where the Norwegian capital is enjoying an impressive boom.
 

Luxury is perhaps not the first thing that leaps to mind when thinking of Norway. More playwrights, artists and voyageurs like Ibsen, Munch, Amundsen, and Heyerdahl. But many of the finest luxury marques have been busily expanding in Oslo, like Max Mara, which just opened a 400-square-meter boutique of Calacatta marble and French parquet floors there this February.
 
Moreover, a new generation of more adventurous tourists – from Asia, Europe and the US – have been rockin’ up in Oslo, enjoying its Art Deco hotels; unique waterfront; grand opera house; museums and, especially recently, sophisticated shopping.

At the city’s heart is Promenaden, a tony district anchored by Steen & Strøm, a truly venerable department store, dating back to 1797. Le Bon Marché in Paris, which styles itself as the world’s oldest department store dates back to 1852.
 
Now, the department store is poised to have an incredibly busy April with the opening of a new tech hall, and a fresh level offering contemporary fashion labels, with an emphasis on emerging Scandi brands.
 
“Oslo is a completely new city. The whole vibe of the city has changed. It’s become a major new cultural destination – a beautiful city between waterfront and forest,” enthuses Annette Lund, CEO of Promenaden, a key developer of luxury retail spaces in the Norwegian capital, and the owner of Steen & Strøm. She cites the opening of a new Munch Museum – boasting 28,000 works of art – as another major attraction for visitors. 
 
“Twenty years ago, Mulberry was the only luxury brand here. But we have been on a fantastic journey this past decade – Vuitton, Dior, Saint Laurent, Bottega and now Loewe have opened retail spaces,” she enthuses in a zoom from Oslo.
 

Located between the central station and parliament, the Promenaden District is a historic area with most property dating to the late 19th century. At its center is one of Europe’s most happening luxury thoroughfares – Karl Johan gate, around which the Promenaden company owns 76,000 square-meters of real estate, including Steen & Strøm.
 
“The development of the Promenaden District is a very compelling narrative. Karl Johan gate has incredible foot traffic – over 18 million people per year. And, operating under the halo of Promenaden, Steen & Strøm is at its heart,” explains David Wilkinson, the department store’s chief executive.
 
Under his watch, Steen & Strøm has been very busy, fully reimagining its 12,000 square-meters of retail space.
 
In 2021, they developed a brand-new ground floor with an atrium and a entertainment hall. Some 900 square-meters and 200 brands, which now includes Loewe with a prominent space and “a view into the belly of the department store,” in Wilkinson’s words.
 
“The demand for luxury is very steady in Norway and growing. Through the end of February, we are up 18%!” he enthuses. 
 
As Steen & Strøm is a “smaller footprint” department store compared to behemoths in London or Paris, it likes to create concepts and destinations, like its tech area, which will eventually offer 200 brands.
 
Asked about the key performing brands in Oslo, he responds: “Chanel, Polo Ralph Lauren, Max Mara Studio, Hugo Boss, Loewe and Gucci. Gucci was up 27% last year! I have to say when I heard about Kering’s recent results with Gucci, my reaction was ‘that is not our experience!’” he chuckled.
 
“Our goal is the democratization of luxury and a store where you can buy a puzzle bag from Loewe or toothpaste in the food hall. We have multiple channels like a Netflix series – you have to keep on refreshing,” he insists. 
 

Next in the pipeline, this summer Steen & Strøm will open what they predict will be Europe’s largest luxury watch store, with a local operator Urmaker Bjerkes.
 
While the new tech hall is designed to serve the creative community in Norway – with a working photographic studio, expresso bar, and advanced brands like Leica, Apple, HQ Sound System. 
 
Among, the labels Wilkinson is excited about are Chimi, a Swedish eyewear label combining classic futurist styles and raw materials like cellulose and recycled plastic. Or New Movement, a local circular sneaker brands with fab designers – retailing for around €250. While on the ground floor, customers can enjoy a great expresso and local Soulcake cookies and cupcakes. “We sold 100,000 cupcakes last year,” he chuckles.
 
Unlike the UK, where fashion and luxury spending by tourists plummeted after the ending of tax-free shopping in 2021, in Norway over 3,000 stores offer duty-free shopping for visitors, granting a 90% refund.
 
“In Steen & Strøm our tax-free volume averages 26%, and this year should reach 30%. It drives a narrative,” smiles Wilkinson, who manages a unique store that is very much on a roll.  Last year, it had a record year, with some 730 million Norwegian krone in revenue, around €65 million. “And this year we expect it to grow by 25%, which isn’t bad where you consider one third of our trading space is being renovated and is out of action,” he notes. 
 
Business is so good, Promenaden plans to extend its luxury retail offer on another high-end street nearby – Øvre Slottsgate. Last year, the Promenaden district achieved an estimated 2.1 billion retail turnover in Norwegian krone (€181 million), and that’s without even including Steen & Strøm.
 
One should not forget that ever since huge oil reserves were discovered offshore in the 1960s, Norway has become one of the world’s wealthiest countries. Average income in 2023 was over €100,000. Plus, the country has the world’s largest sovereign wealth fund with €1.2 billion in assets. And, remarkably, one of the lowest inequality gaps in the world.
 
How, one wonders, do tastes vary Oslo compared to London, New York or Paris?
 
“When people think of Scandinavia they tend to think of Copenhagen and Stockholm, but Oslo has its own specific sensibility. Norway is more subtle, less conceptual than Milan, but very sophisticated,” argues Wilkinson.
 
While Lund adds: “Consumers here want investment quality products, which is why luxury does so well. It’s a question also of educating consumers, as people are curious and not afraid to try something new. Uncertainty and high interest rates are a short-term challenge, but not a long term concern. Luxury is still going to perform very well as people want quality that is sustainable!”