Colliers Denmark Market Report 2024

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RETAIL - COLLIERS MARKET REPORT 2024

HOTEL INDUSTRIAL & LOGISTICS RETAIL RESIDENTIAL OFFICE

Seniors have almost caught up with younger groups in online shopping

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

14

15

16

17

18

19

20

21

22

23

16-19 yrs

20-39 yrs

40-59 yrs

60-74 yrs

Note: Percentage of the Danish population who have shopped online in the last 3 months. Source: Statistics Denmark, Colliers

The 60-74 age group has increasingly embraced online shopping. There are signs that older age groups are catching up with younger consumers. We see this as an indication that on the one hand, older people have become more accustomed to shopping online as a result of the coronavirus pandemic. On the other hand, it could also be a result of the fact that both parts of the current and future older generations have been more involved in the technological development and therefore it is becom ing a more natural part of their shopping patterns. It is particularly noteworthy that the 20-39 age group, which was particularly quick to embrace online shopping, increases in 2023, but not to the same level as in 2020. The goods that consumers prefer to buy in physical stores are mainly groceries, furniture and home furnish ings. For groceries, this is largely due to the fact that the consumer can get the goods immediately; for furniture and home furnishings, it is possible to check the quality of the goods before making a purchase. In 2023, several grocery groups closed or scaled back their home deliv ery offerings – it was difficult to make money from activ

ities with high logistics requirements, delivery challenges and limited consumer interest (especially if there was a fee for delivery). The most popular online “goods” are vacation trips and tickets to cinemas and other entertainment. Here it is easy to shop from home and it is neither necessary nor possible to see the product in advance in a physical store. For consumer goods such as clothing, books and tech nology, shopping is more evenly distributed between the computer and the store counter. We see clear signs that the physical store still has its place. But the focus has shifted for the physical store: whereas it used to be necessary to sell goods, it has become more of an extra service for customers, who get an experience and perhaps advice by coming to the store. Opening a physical store can also be a sign that a company has good online sales but wants to strengthen them further. This should be seen in light of the current focus on reaching consumers through multiple sales channels, and the physical store can help take a com pany or brand to the next level.