According to Svensk Handel's annual sustainability survey, sustainability is now an established business strategy. Of the companies surveyed, 80 percent believe that the work contributes to the profitability of their operations. Interest is also clear on the consumer side; 74 percent of consumers state that it is important for companies to actively work with sustainability.
For companies in the retail sector, sustainability work is no longer a side track. It is a central part of the business and is about remaining strong over time, says Sofia Larsen, CEO of Svensk Handel.
E-commerce Drives the Second-Hand Market
Consumers' attitude towards consumption is changing. Instead of buying less, more people are choosing to shop through circular models with a focus on durability and resale value. This demand is currently increasing at a faster rate than supply.
As Ehandel.se previously reported, online sales account for a growing share of this market. In February, e-commerce accounted for 78 percent of total sales within the second-hand trade, a month when sales in physical stores declined by 25 percent.
But despite more retail companies developing their second-hand offerings, many struggle to achieve profitability. Turnover for used clothing as well as furniture and home furnishings decreased during the first months of the year, indicating that the market is under pressure.
Demand for Reduced VAT Ahead of Election
A recurring obstacle to profitability is the current tax model, where second-hand products are double-taxed. Ahead of the 2026 parliamentary election, Svensk Handel is now demanding changes to the regulations.
How quickly the transition can take place will largely be determined by politics, as our survey shows that both companies and consumers are ready. For the circular economy to really take off, the VAT on second-hand goods needs to be lowered, says Sofia Larsen.
Maria Mikkonen, chief economist at Svensk Handel, shares the view that the current structure negatively affects the market.
Today, used goods are taxed each time they are sold, which hinders the market. A reduced VAT could help increase both supply and demand, states Maria Mikkonen.