Colliers Denmark Market Report 2024

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RETAIL - COLLIERS MARKET REPORT 2024

Vimmelskaftet 42, Copenhagen high street

Retail recovery – but will consumer spending weaken?

After three corona years, followed by war and economic turmoil, the retail sector saw growth. However, rising interest rates and uncertainty are impacting consumer spending and thus retailers’ sales and earnings.

Danish retailers came through 2023 better than many had feared. After a turbulent 2022 marked by the high est inflation in four decades, soaring interest rates and falling real wages, consumer confidence was at a very low, albeit rising, level at the start of the year, having bot tomed out in October 2022. It was therefore also remark able that turnover in Danish stores in the first months of 2023 was higher compared to the previous year. Despite positive effects from, for example, returning tourism, retail sales in 2023 were only slightly higher compared to previous years. The sharp rise in interest rates in 2022, which continued into the first half of 2023, has affected private consumption and spending patterns.