Removed parking spaces in the city center – suggests that the retail business is not damaged – Macro and politics



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Many have predicted bankruptcy and reduced turnover when the Oslo Municipality launched with the Party of Environment the environmental plan "An urban life without a car", which allowed to remove 700 parking spaces in the downtown streets in the last year.

The figures from the analysis of the Ministry of Industry however show that the business figure of downtown Oslo was not greater than that of the rest of the capital city.

"The screams were very loud in advance, but it seems that fewer parking spaces in central Oslo have had no particular impact on the trade," said Bjørn Næss, chairman of the company. Association of Oslo Trade Unions (OHF).

He thinks that the fear of a reduction in the number of parking spaces has been exaggerated. This is despite the fact that Næss indicates that there are several examples of companies that had to leave the center after the decline in car traffic.

– But he was raised more than he deserved.

Compare the law on smoking

In 2018, the retail trade in the center of Oslo grew by 2.1%. Outside the center, growth was 2.2%.

But most of the center's stores, such as clothing, jewelers, watchmakers and bookstores, perform better in the city center than outside. Despite the fact that there are several hundred fewer parking spaces in the area.

– You can compare that to the tobacco law. Then many predicted that all the restaurants would go bankrupt, but that never became an effect, says Næss and continues:

– Just as no one wants to start smoking in restaurants again, few people are likely to return to a city where there are many cars.

The report shows that the sports industry, electronics chains and indoor shops, most often located outside the city, perform better in these areas than in the downtown core.

The merchandise trade was reversed before the municipality removed parking, due to both booming e-commerce and changing consumer habits that people spend less money but more experiences and services.

– Do many of those who complained about the parking lot struggle more because of other things than fewer cars in the city center?

– Yes, I can probably do a lot for this analysis. The numbers show that 2018 has been a good year for trading in the center.

Uncertain of the toll effect

There are not only fewer parking spots in the downtown area that have made a splash among many of the trade industry, but also offensive monetary policy, and the Næss of the OHF estimates that "no money is needed." it is too early to say how it will affect the industry.

– Personally, I do not think that people will stop driving at Ikea because it costs six extra crowns, but it is quite possible that we see commercial leaks inside and outside the buoy .

Last year, there were seven fewer outlets in traditional retail stores in Oslo, but in the retail sector in general, 19 stores were added last year.

The worst was going beyond toy stores because of the bankruptcy of Top Toy, which held the rights to Toys "R" Us and BR Leker, so that a turnover down from 21.2% to 360 million NOK in Oslo.

It's almost as bad for cookware stores, which are also characterized by the collapse of channels like Rafens and Tilbords. According to the report of the Department of Industry Analysis, turnover decreased by 18.5% to NOK 492 million.

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