XXL, the Norwegian sporting goods giant, is relocating its stores in Uppsala, Västerås, and Växjö in Sweden due to soaring rental costs. The moves, set for late summer, involve shifts of just a few hundred meters each but stem from what the company describes as “soaring rents.” Anders Lindblom, the Sweden head for XXL, expressed concern about the broader impact of these cost increases. “Rent hikes of almost 20 percent in the middle of a recession feel detached from reality, almost surreal, and will lead to many parts of shopping areas standing empty – especially in small and medium-sized cities,” he said.
The relocations, however, are seen as an opportunity to optimize space and modernize facilities without losing sales or cutting jobs. “These are three important locations for us where we neither want to abandon our customers nor reduce the number of employees and the job opportunities we create locally. The current system for setting rents is dysfunctional and will become one of the most important future issues for us and the entire industry,” Lindblom added.
The situation with rental costs has been a continuing issue, prompting other retail chains like Stadium to terminate many of their leases. Given the circumstances, Lindblom does not rule out further relocations of XXL stores unless negotiations with property owners improve. “This is also a good opportunity to adjust to new consumption patterns. Our customers have less time today, and we will be able to build more efficient stores where you can quickly get an overview of the entire range and also make it easier to get personal assistance in the stores for those who have questions,” Lindblom concluded.
This trend reflects the broader struggles within the retail sector, which has been severely affected by the economic downturn, with issues like excess inventory post-pandemic, decreased purchasing power, and rising operational costs exacerbating the challenges.
