Denise Relocates 150 Miles to Establish Unmanned Grocery Store in Porjus

In the small village of Porjus, an unusual sight greets visitors outside a grocery store: a moose adorned with a red scarf. The store's owner, Denise Magnusson, hopes to attract tourists with this unique display.

When the local Ica store closed its doors in 2017, residents were left without a convenient shopping option. Three years ago, Magnusson took the initiative to open a hybrid grocery store, operating two days a week while remaining unmanned at other times. Customers can access the store using their Bank ID.

One of Magnusson's primary challenges is the high cost of purchases combined with a small customer base, which makes sustaining the store difficult.

Initially, her move from Borås to Porjus, approximately 150 miles, was motivated by a desire to provide her children with a safer upbringing.

"The local high school had security concerns, and I wanted a better environment for my kids," she stated, reflecting on her transition to this rural location. Once settled, she felt compelled to contribute to her new community, taking on roles as a local politician and chairperson of the village association.

"Everyone talked about the need for a store here, so I thought, 'Why not me?'" she added.

According to the Swedish Agency for Economic and Regional Growth (Tillväxtverket), the number of grocery stores has increased in several regions, indicating a shift in retail trends. Notably, there has been a rise in unmanned stores and those with limited offerings.

The grocery store in Porjus is monitored by cameras, and customers must use their Bank ID to enter when it is unmanned.

Pär Ove Bergquist, an expert on accessibility and commercial services with Tillväxtverket, acknowledges the financial challenges faced by such businesses. While unmanned stores reduce labor costs, expenses for utilities and goods remain constant, leading to potential profitability issues. Larger retailers often benefit from lower purchasing prices due to bulk buying, widening the gap in profitability between small and large stores.

In 2024, regional authorities allocated 55 million SEK in operational support to 277 grocery stores, with 155 businesses receiving investment grants totaling 66 million SEK. These funds aim to bolster food retailers and gas stations in rural areas of Sweden.

When Magnusson opened her store in 2022, it featured a wide range of local products, pharmacy items, and services like Svenska Spel. However, she has since had to narrow her inventory because local consumers primarily purchase snacks and beverages, limiting their engagement with the store.

She attributes this trend to rising food prices and economic pressures on consumers. "It's not just the customers' fault; it's the larger chains that draw them in with lower prices," she explained.

Magnusson's store operates independently and is set to receive approximately 257,000 SEK in operational support from Region Norrbotten through Tillväxtverket this year. However, her revenue only covers her expenses, leaving no profit. Last year, she was unable to draw a salary from the business.

Her main struggle remains the high purchasing costs. Due to her limited customer base, she cannot buy in bulk, which increases the price of each item. "Sometimes it's cheaper for me to go to Ica and buy things I want to sell here," she noted.

Currently, she can only source food from Dagab, the wholesale operation of Axfood, which has been identified by the Swedish Competition Authority as a significant player in the market for independent retailers. Magnusson believes this creates an imbalance that hampers the viability of independent businesses in rural areas. "There should be better regulations in place so that we can sustain operations in the countryside," she concluded.

Dagab serves around 4,000 independent clients, including gas stations and local grocery stores. A representative from the company acknowledged that they have received feedback from retailers about rising prices but emphasized their commitment to providing a diverse product range.

Despite the difficulties, Magnusson remains determined to continue operating her store, highlighting its importance to the community, particularly for elderly residents. "My goal is to run this store for ten years, and I plan to stick to that," she affirmed.

About Porjus: Located in Jokkmokk municipality, Porjus is a small locality with a population of just under 250. It is known for its hydropower station, which was one of Sweden's first major hydroelectric plants. A 2020 report identified Porjus as lacking essential community services, with the nearest medical center and pharmacy located nearly 40 kilometers away in Jokkmokk.