Oslo's Steen & Strøm Sees Record Tax-Free Sales Surge Highlighting Global Retail Shift

The pivotal role of VAT-free sales within the department store sector has been vividly underscored by the latest financial disclosures from Oslo's Steen & Strøm. As the world's longest continuously operating department store, Steen & Strøm announced this week that it is celebrating an unprecedented surge in tax-free sales, marking its fourth consecutive year of impressive growth. This remarkable performance highlights a significant trend impacting retail dynamics globally.

The figures released by Steen & Strøm reveal a substantial uplift in key metrics. Tax-free sales escalated by an impressive 27% during the first eight months of 2025. Concurrently, overall transaction volumes saw a healthy 16% increase, with the average customer spend rising by 9%. These statistics clearly illustrate the outsized contribution of tax-free transactions to the retailer's success. Specifically, August 2025 alone witnessed a spectacular 34% growth in tax-free sales, as reported by Global Blue, a feat made even more notable given that the month had one fewer shopping day compared to August 2024.

This success story at Steen & Strøm is not an isolated incident but rather mirrors a broader pattern observed in other European retail hubs. Conversely, the absence of similar growth in UK department stores serves as a stark reminder of the importance of tax-free shopping. British retailers have reported declining sales, largely attributed to the abolition of tax-free shopping for their international clientele following Brexit, demonstrating a clear link between such incentives and retail performance.

An analysis of Steen & Strøm's 1,000 brands reveals their particular popularity among Chinese shoppers, who lead the list of international visitors. They are closely followed by tourists from the United States, the United Kingdom, Thailand, and India. The presence of UK shoppers on this list further emphasizes a critical issue for British retailers: not only are international tourists less inclined to visit the UK for shopping, but British citizens themselves are increasingly opting for overseas trips to make their luxury purchases, foregoing iconic London stores like Harrods or Selfridges.

Steen & Strøm's current achievements build upon its best-ever trading year in 2024. This previous success was largely driven by a strategic focus on capitalizing on tax-free shopping opportunities, alongside significant capital expenditure initiatives by Promenaden Management. These investments were aimed at enhancing the store's overall appeal to both a burgeoning international visitor base and growing domestic demand within the wider Promenaden shopping district.

Further enhancing its tax-free offering, Steen & Strøm launched a new dedicated tax-free refund service in June 2025, strategically located on Level 5 within the store’s Tech Hall. This innovative service is not exclusive to Steen & Strøm patrons but extends its benefits to shoppers from the entire Promenaden district and Greater Oslo. Since its inauguration, the refund desk has rapidly ascended to become Norway's second most frequented VAT reclaim location, surpassed only by Gardermoen Airport, based on transaction data for July and August 2025.

Looking ahead, Steen & Strøm anticipates that its impressive year-to-date growth trajectory, characterized by strong double-digit increases, will continue through the remainder of 2025. David Wilkinson, Executive Director at Promenaden Management, commented on the trend, stating, “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.” He added, “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.”