While the British high street faces a relentless wave of closures, with an average of 38 shops shutting permanently every day, a Danish-born retailer is scripting a remarkable success story. Søstrene Grene, the homeware brand famed for its cosy aesthetic and wallet-friendly prices, is aggressively expanding across the UK, offering a slice of 'hygge' amid a bleak retail landscape.
The 'Warm Hug' Store Defying Retail Gloom
In stark contrast to recent closures announced by stalwarts like Claire's, River Island, and WH Smith, Søstrene Grene stores offer an inviting sanctuary. Characterised by low lighting, soft furnishings, and charming trinkets, they provide what founder Mikkel Grene describes as a 'small break from hectic daily life'. The brand's genius lies in selling an experience over specific products; more than half of customers enter without knowing what they want to buy, drawn instead by the promise of discovery.
The commercial appeal is underpinned by strikingly low prices that defy the cost-of-living crisis. A chic bread basket costs £3.60, a soap dispenser £2.94, and the fan-favourite mugs are priced at £4.94. The brand positions itself uniquely: not as budget-focused as Primark, but delivering a Zara Home-like aesthetic without the accompanying price tag.
The Strategy Behind the Affordable Scandi Aesthetic
Founded in 1973 by Danish couple Inger Grene and Knud Cresten Vaupell Olsen, the company's ethos is built around fictional sisters Anna (creative) and Clara (practical). Their sons, Mikkel and Cresten, took over from 2003, spearheading international growth. Between 2024 and 2025, the brand opened 47 new stores, primarily in the UK and Germany, welcoming over 100 million customers. It now operates 386 shops across 17 countries.
Mikkel Grene explains the store's deliberate Ikea-style layout is designed to take customers on a 'journey'. 'We're deliberately making it quite dark and closed, so you sort of lose direction quite quickly, and you're immersed in it. It's like a treasure hunt,' he says. This tactile, immersive experience is crafted by a team of ten designers who shun digital or AI designs for an 'authentic and tactile expression', favouring natural materials like wool and cotton.
How do they maintain such low prices? A spokesperson revealed the brand 'avoids expensive intermediaries', dealing directly with suppliers to keep margins minimal. Crucially, during the inflation spikes of 2022 and beyond, Søstrene Grene chose to absorb most cost increases rather than pass them to customers, a decision rooted in not wanting to add pressure during a cost-of-living crisis.
Tapping into 'Little Treat' Culture and Future Expansion
The brand is a clear beneficiary of the 'little treat' economy, particularly appealing to Gen Z consumers. A study by Next found Brits treat themselves at least weekly, with 18% doing so up to three times a week, spending around £5 on average—the perfect price point for a Søstrene Grene mug.
Looking ahead, the brand has ambitious plans. 2025 saw 22 new UK shops open, and the goal is to have 100 stores on British soil by 2027, a market Mikkel Grene calls one of their most 'exciting'. This year will also see physical store launches in Poland and Italy, and an online launch in Spain. In a struggling sector, Søstrene Grene's blend of affordable Scandi design, experiential retail, and empathetic pricing is proving a recipe for remarkable resilience and growth.
