Sweden's electronics retail landscape is shifting again as Power announces a major return to central Stockholm. The chain, formerly known as Media Markt, will open a 1,200 square meter flagship store at Kungsgatan 27 before summer 2026. This move comes less than a year after shuttering its previous Drottninggatan location, signaling a bold bet on the future of physical retail in the city's core.
"We have had enormous pressure from our customers who missed a physical store inside the city limits," said Magnus Kreuger, CEO of Power Sweden, in a statement. The decision reverses a trend of big-box retailers retreating from expensive urban centers. It places Power directly in the bustling commercial corridor of Norrmalm, competing for foot traffic with major brands and online giants.
A Strategic Pivot on Kungsgatan
The new location at Kungsgatan 27 represents a calculated shift. Drottninggatan, the former home, is a pedestrian shopping street. Kungsgatan is a major traffic artery connecting Hötorget to Sergels Torg. Analysts see this as a move towards higher visibility and better accessibility for customers arriving by car or public transport. The two-floor, 1,200 square meter format is also notably smaller than typical suburban Power stores, indicating an adapted, experience-focused model for urban consumers.
"This isn't just reopening a store; it's rethinking the urban electronics concept," says retail analyst Elin Forsberg, who tracks the Nordic consumer electronics sector. "Kungsgatan offers different demographics and traffic patterns than Drottninggatan. Power is likely betting on attracting professionals, tourists, and a mix of impulse and planned purchases. The success will hinge on creating an experience that online shopping cannot replicate—immediate product access, expert advice, and hands-on testing."
The High-Stakes Bet on Physical Retail
Power's comeback defies the dominant narrative of brick-and-mortar decline. The Swedish Retail Institute (Handelns Utredningsinstitut) reports that while online sales of electronics continue to grow, they still represent a portion of total sales. A significant segment of consumers, particularly for high-value or complex items like TVs, laptops, and appliances, still values physical inspection and in-person consultation before buying.
"The 'death of the store' has been greatly exaggerated," argues Forsberg. "What's dying is the bad store—the one with poor service, limited stock, and no reason to visit. Retailers like Power are learning that the store must be a marketing tool, a service hub, and a logistical node for click-and-collect. Their investment suggests they believe a flagship in Stockholm's business district is worth that multi-role premium."
The 2026 opening timeline is significant. It gives Power nearly two years to design a store concept from the ground up. Industry observers expect a heavy emphasis on smart home showrooms, dedicated gaming zones, and areas for workshops and product demonstrations. The goal will be to drive foot traffic not just for sales, but for brand engagement that pays off across all channels.
Navigating Stockholm's Retail Realities
The move back inside the city limits, or "innanför tullarna," is a vote of confidence in Stockholm's city center economy. However, it comes with formidable challenges. Commercial rents on Kungsgatan are among the highest in Sweden. Employee costs are elevated. The store must generate substantial revenue per square meter to justify the expense.
Power will also face intense competition. Webhallen has a strong physical and online presence. Inet and NetOnNet are aggressive online players. Consumer electronics are also sold in department stores like Åhléns City, just blocks away. Power's strategy will need to clearly differentiate its offering, potentially through exclusive brand partnerships, enhanced service packages, or integrated financing options.
"The central Stockholm consumer is savvy and has infinite choice," notes Karl Bengtsson, a venture partner with a focus on retail tech. "Power's advantage must be curation and convenience. Can they offer the best demo experience for the latest OLED TV? Can they provide instant, expert setup for a complex home theater system? That's the service premium that can defend a physical location."
The Broader Nordic Context
Power's decision is being closely watched across the Nordics. The company operates over 150 stores in Sweden, Norway, Denmark, and Finland. If the Stockholm flagship proves successful, it could blueprint a strategy for revitalizing urban stores in Oslo's Karl Johans gate or Copenhagen's Strøget. The Nordic electronics market is consolidating, with chains seeking scale to negotiate with suppliers like Samsung, Sony, and Apple.
This reopening also reflects a broader recalibration in Nordic retail. After a period of online hyper-growth, many brands are finding value in a balanced omnichannel approach. Physical stores reduce return rates for certain product categories. They build brand loyalty. They act as efficient hubs for handling online order returns and exchanges, a major cost center for pure e-commerce players.
What the 2026 Store Must Deliver
For Power, the Kungsgatan store cannot be a mere warehouse with cash registers. Industry experts outline several non-negotiable elements for its success. First, seamless omnichannel integration is essential. Customers should be able to check real-time stock online, reserve items, and pick them up instantly in-store. Second, the staff must transition from cashiers to certified product experts. Third, the space must be flexible, allowing for pop-up brand partnerships and seasonal showcases.
"The financial model for this store is different," concludes Elin Forsberg. "Its key performance indicator might not be sales per square meter alone. It could be measured by how many online customers it converts from competitors, how much it boosts the average order value for the Stockholm region, or how effectively it builds brand perception. Power is investing in a long-term asset, not just a sales point."
As construction and planning begin for the 2026 opening, Power's move sends a clear signal. The heart of Stockholm remains a premier battleground for retail relevance. In an age of digital everything, the physical store is fighting back—not by being old-fashioned, but by being more necessary and experiential than ever. The pressure from customers that CEO Magnus Kreuger cited has been answered. Now, the pressure is on Power to deliver a store that justifies their return.