5 key takeaways from Nordic RETAIL SUMMIT

Sustainability was high on the agenda, with a strong emphasis on the need for businesses to drive the transition without stifling innovation through regulation. Several speakers highlighted the challenge posed by competition from Chinese companies like Temu and Shein, whose products often contain harmful substances and are sold at unusually low prices. The question of whether stricter import regulations should be introduced was raised, along with how businesses can compete with such pricing in a more sustainable way.

Kristofer Tonström, CEO of Clas Ohlson, stressed the importance of integrating sustainability into the core of business operations to create long-term value. This strategy can open up new revenue streams while enhancing brand credibility and complying with future regulatory requirements, particularly as the EU focuses on circularity and product traceability.

Ludvig Strand from Axel Johnson presented a future where generative AI will transform the retail sector. Unlike previous forms of AI, generative AI can mimic human behaviour and may even evolve to create relationships with customers. We are entering an era where AI agents can act as personal advisors and even virtual colleagues.

For the retail sector, this shift means moving from SEO strategies to AI optimisation, where companies will need to adjust their online presence to meet the demands of AI-driven search and answer engines. In the future, AI may interact directly with consumers through digital agents that can assist with everything from recommendations to handling returns.

Lars-Johan Jarnheimer, one of the closing speakers, shared his insights on leadership in the rapidly changing retail world. He emphasised the importance of customer focus, speed, and execution. Successful companies must remain flexible, simple, and customer-centric, and be willing to break away from traditional structures to find new solutions. One of his suggestions was to regularly implement “reality weeks” to ensure company culture remains dynamic and customer-focused.

Collaboration is crucial for the retail sector to grow and create a safe environment for customers, employees, and businesses, the speakers noted. Sweden’s Finance Minister, Elisabeth Svantesson, pointed out how critical the retail industry is for the Swedish economy and that the coming years will present significant challenges, particularly with upcoming sustainability regulations expected to cost the retail sector billions. At the same time, there is a race where innovation and transition are vital for Sweden to maintain its leading position in green transformation.

Eva Karlsson, CEO of Houdini Sportswear, urged businesses to rethink their approach – to “re-imagine” how we create sustainable products and business models. Her message was clear: companies must contribute to the world, rather than just take from it.

As the retail sector becomes more digital, its vulnerability to cyber-attacks also increases. In 2023, cybercrime has risen by 100%, with retail companies being particularly exposed. DDoS attacks combined with phishing are increasingly common tactics that can cripple businesses. To protect themselves, companies need a stronger cybersecurity strategy and an agile defence system.