Steen & Strøm highlights importance of tax-free sales, says shoppers visit Oslo rather than London

The crucial place VAT-free sales have in department store retail has been shown by the latest results from Oslo’s Steen & Strøm, the world’s oldest continuously running department store.

It said this week that it’s “celebrating record tax-free sales, marking its fourth consecutive year of growth”.

Tax-free sales surged 27% in the first eight months of 2025 and overall transactions grew 16% with average spend up 9%. The figures show how big a part tax-free sales play for such retailers and in August alone, tax-free sales grew by 34%, according to data from Global Blue. That spectacular August result came despite the month having one less shopping day compared to August 2024.

That’s a lesson also seen from recent results at other stores across Europe and one that’s highlighted — in reverse — by UK department stores that have been reporting lower sales due to the absence of tax-free shopping for their international customers.

It’s interesting that the retailer’s 1,000 brands proved most popular with Chinese shoppers, followed by visitors from the US, UK, Thailand and India. The presence of UK shoppers on the list also highlights another issue that British retailers have had since tax-free shopping for tourists was all-but-abolished following Brexit. It seems that not only are international shoppers not coming to the UK as often, but Britons themselves are choosing to take trips abroad to do their shopping rather than buying from stores like Harrods or Selfridges.

Back with Steen & Strøm, the results follow its best-ever trading year in 2024, “which was in large part driven by its move to capitalise on tax-free shopping sales as well as capital expenditure initiatives by Promenaden Management to enhance the store’s appeal – both to international visitors as well as a domestic shoppers, from which S&S and the wider Promenaden shopping district is seeing growing demand”.

In June, Steen & Strøm launched a new tax-free refund service on Level 5 within the store’s Tech Hall. The service is available not only to Steen & Strøm visitors but also to shoppers from Promenaden and Greater Oslo. Since launch, the desk has quickly become the second most frequented VAT reclaim location in Norway, after Gardermoen Airport, based on transactions during July and August 2025.

The retailer also said that it anticipates the year-to-date growth trend will remain in strong double digits through the remainder of 2025.

David Wilkinson, Executive Director at Promenaden Management, said: “British shoppers are increasingly coming to Oslo and other European capitals to take advantage of tax-free shopping… The city is quickly solidifying its position as one of the world’s most sought-after retail destinations, an appeal which is further bolstered by the capital’s offering of a uniquely Scandinavian brand of chic and promise of year-round cool weather.

“At Steen & Strøm, we’ve seen first-hand how this appeal combines with tax-free shopping to drive record demand, with many customers telling us they are choosing to make their luxury purchases abroad rather than in London. This was a large factor in our decision to launch a new dedicated tax-free refund service, which has paid dividends both for the store and for shoppers seeking rebates on their purchases.”