Report

E-barometern 2023
annual report

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The E-barometern annual report monitors and analyzes e-commerce development in the Swedish retail industry, and is based on five consumer surveys and one survey with e-retailers in Sweden.

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Highlights from the report

Slightly negative development for Swedish e-commerce

For the second year ever in the history of E-barometern, e-commerce had negative full-year growth, ending at minus 2 percent for 2023. However, compared to the rate in 2022, when e-commerce decreased by 7 percent, this figure is brighter.

However, there are large differences between the various sectors. The difference between capital-intensive and low-cost sectors on the one hand, and pleasure- and need-driven purchases on the other, is increasing. 2023 started off slowly, but in the final months of the year improvement could be seen. The development of both E-barometern’s figures and the economy as a whole show that the situation is easing in some areas, which is a sign many e-retailers have been hoping for.

Strong performance in the beauty and pharmacy sectors 

 

The online beauty sector grew by a massive 18 percent in 2023 compared to 2022. These figures are similar to those of the pharmacy sector, which stands out together with the beauty sector as the e-commerce winners of 2023. One phenomenon in the beauty sector that has taken hold in recent years is the building of communities: creating a space on e-commerce platforms where consumers can review and recommend products to each other. This is a very popular feature for the main target group of young women and means that more and more customers are finding their way online and staying there.

Clothing and footwear grew by three percent

 

Clothing and footwear is one of the sectors that has managed to keep its head above water throughout 2023. During the past year, the sector had a positive development at a time when e-commerce in general was a bit shaky. The cold winter and snowfall that hit much of the country in late 2023 increased the need for people to update their footwear. This gave the footwear industry as a whole a much-needed boost. During the last quarter of the year, total footwear retail showed positive development figures and grew more than the clothing industry as a whole.

Struggling times for building materials merchants

 

One sector that was strongly affected by the weak economy in 2023 was the building materials sector, which saw a negative growth of 19 percent. The willingness of consumers to invest was low and many small construction companies went bankrupt. Another reason for lower demand was that many households took the opportunity to expand and renovate their homes during the pandemic. During 2023 the Swedish government decided to increase the so-called ROT tax deduction, and this change will enter into force on 1 July, 2024. This will perhaps help to increase demand in the sector.