Colliers Denmark Market Report 2025

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RETAIL - COLLIERS MARKET REPORT 2025

Strøget, Copenhagen high street

Is the retail sector finally on track for recovery?

In 2024, the Danish retail sector was characterised by hesitant con sumers and continued uncertainty. Danish consumers had not forgot ten the dire situation from 2022 and partly 2023 with high inflation, high interest rates and falling real wages, and although there were clear signs of improvement in 2024, they did not translate into a real comeback for the retail sector.

The situation in 2022-2023 caused a shift in consumption patterns, with consumers focusing more on necessities and showing restraint. This resulted in a sharp drop in total retail sales, which was exacerbated by the shift in consumption patterns in 2024. At year-start 2024, both the tendency survey for retail trade and consumer confi dence indicator were in negative territory, and although we saw improvement during the year, consumer confi dence had not turned positive by the end of the year. Nevertheless, the retail sector is poised to pick up in the coming 12 months. Among the bright spots is real wage growth, with real wages up by 3.2% in 2024. This is helping to boost con sumer purchasing power, with potentially sustained real wage growth in 2025 due to prospects of contin ued wage increases along with an inflationary stabilisa tion. In addition, it also appears that rate cuts by both the ECB and the Fed will continue into 2025. This could fur ther enhance consumers’ disposable income, which is a source of optimism.

It should be noted that both nominal and real consump tion figures for 2024 showed an increase in consumer