Now the furniture industry notices that people have less to carry around. For the first time, Skeidar is offering a three-year interest-free loan to buy new furniture. Skeidar tells news that they see this as a good offer for their customers, but that they do not wish to comment beyond this. Card use is falling Last week, Norges Bank once again raised the key interest rate, which now stands at 4.25 per cent. The fact that people have less to deal with also affects the rest of the sales industry. In August, card use decreased by 3 per cent compared to August last year, according to a report from DNB. If you compare it with the normal year 2019, August is the weakest month so far in 2023. You have to go back to the corona-closed January in 2022 to find a month with weaker growth compared to 2019. Merchandise also continues with negative annual growth, where card consumption was down 5 percent in August. Sports equipment and electronics are somewhat stronger than in July, but still a decrease from August 2022 of 4 per cent. Home and hobby items reduce merchandise trade by 9 per cent, according to DNB. This has resulted in “desperate” tricks from the industry, which wants consumers to shop more. Buyers used 13 percent fewer electronic products have been sold in the first half of this year compared to the same period last year. Measured in kroner and øre for the chains, there is a decrease of 8 per cent in the same period. Lone Solrud went to Power to buy a PC. There she found out that a brand new one was too expensive. Instead, it was a used PC, which she got from a dealer for NOK 5,000. – It was much cheaper then, than buying a brand new PC. It is quite new, so I see it as worth it, says Solrud. BUYING USED: Lone Solrud would rather buy a used PC than a new and expensive one. People who have had less to worry about save on electronics, among other things. Communications Manager in the Electronics Industry, Marte Ottemo tells news that people have become more price conscious. – People may not buy the new mobile phone. We also see that they choose slightly less expensive products. They have become more price conscious, says Ottemo. An industry under pressure It is not only the furniture chains that are struggling with lower sales, or that offer deals that are almost too good to be true. Sales of new cars fell by 30 per cent in September, compared to the same month last year. And the industry believes the decline will be greater towards the new year. Certain importers now offer people almost free loans to them as customers. – Have you become desperate? – No, I would not say that we are desperate, but we see a significantly tougher competitive situation than before, says Per Gunnar Berg, CEO of Ford Motor Norway. Berg says that he notices that customers are anxious that the monthly costs will increase more than they have the capacity to handle. Concern for consumers The fall in consumption means that Norges Bank should not raise interest rates again in December, says chief economist at Akershus Eiendom, Kari Due Andresen. She believes the high interest rate contributes to people having to tighten up even more. CONCERNED: Chief economist Kari Due Andresen is concerned about what will happen when people’s savings are used up. Photo: William Jobling / news – The households have had extra savings from the pandemic which they are now drawing on, but when they are used up I am worried about what will happen, says Andresen.
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People shop less – the sales industry takes unusual steps to increase sales – news Norway – Overview of news from different parts of the country
