Tougher market expected in 2024
"During a year that has been difficult for consumers, we are very pleased to have achieved a total turnover increase of 5.2% at the Olav Thon Group's shopping centres in Norway," says Thomas E. Rønning, director of the shopping centre division at the Olav Thon Group.
According to Rønning, the group is pursuing an offensive strategy to increase market shares in 2024, but adds,
"We believe the market will be tougher during the first six months of the year, and that consumption growth will decline somewhat."
Largest increase in food service, services and experiences
With 7.1% of total sales, food service providers experienced a turnover growth of 10.7% in 2023. Turnover growth among service companies and service providers like fitness centres, cinemas, hairdressers, beauty and wellness centres was 10.7%.
Norway's largest shopping centre operator
Eight of the ten largest shopping centres in Norway based on turnover are owned and/or managed by the Olav Thon Group (according to Kvarud's list of the 60 largest shopping centres in Norway, third quarter).
The Olav Thon Group's Norwegian portfolio has a total of 78 shopping centres, of which 47 are AMFI centres. The Olav Thon Group also owns ten shopping centres in Sweden.
Increasing shopping centre visitor numbers
Visitor numbers show that people are increasingly visiting shopping centres. In 2023, there were around 6% more visitors than in 2022. The number of paying customers measured by cash register transactions also increased by 9.8% compared to the previous year.
Eight of the ten largest shopping centres in Norway in terms of turnover are owned and/or managed by the Olav Thon Group.
Thomas E. Rønning, director of the shopping centre division at the Olav Thon Group
Milestones for Olav Thon Group shopping centres in 2023
- The Olav Thon Group acquired AMFI Ulsteinvik at the start of the year. The centre increased its turnover by over 16.3% in 2023.
- Sørlandssenteret achieved more than NOK 3 billion in sales and a growth of 6.3%.
- AMFI Borg achieved more than NOK 1 billion in sales and a growth of 9.5%.
- Åsane Storsenter achieved more than NOK 2 billion in sales and a growth of 6.1%.
- City Syd, which is managed on behalf of other owners, also achieved over NOK 2 billion in sales and a growth of 5.7%.
- AMFI Vågsbygd, AMFI Os and Mosseporten all achieved NOK 700 million in sales for the first time, AMFI Stord NOK 500 million for the first time and the Bjørneparken shopping centre achieved NOK 300 million in sales for the first time in 2023.
- Lagunen Storsenter is once again the Olav Thon Group's largest centre measured in total shop sales, with a turnover of close to NOK 4.3 billion. The centre's turnover was 5.7% higher than the previous year. Lagunen is to be expanded by over 15,000 square metres and construction has already begun.
- Triaden was fully renovated in 2023 and has exceeded NOK 1.1 billion in sales, resulting in a growth of 48.5% compared to the previous year.
Cross-border shopping back to normal
The Olav Thon Group is pleased with developments at the Swedish shopping centres and sees that cross-border shopping and visitor numbers at border shopping centres has returned to approximately the same levels as before.
All in all, turnover in Sweden increased by 4.4 %, with total sales of SEK 15 billion. As in Norway, the greatest sales increases in Sweden were achieved in food and other services, at 9.4% and 10.6% respectively.
Sustainable shopping centre operations
The Olav Thon Group has three main focus areas in terms of sustainability and social responsibility, which are closely related to the UN Sustainable Development Goals. Climate and nature, circular solutions and social justice. Efforts include proactively engaging customers and suppliers in order to achieve the set goals.
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