Colliers Market Report Denmark 2023

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Retail - Colliers Market Report 2023

Corona behind us – but new obstacles looming ahead After two corona years, Danish shops and eateries were still recuperating on the threshold of 2022. However, shortly into the newyear, the retail sec tor was beleaguered by rising energy prices, sky high inflation and rising interest rates, which combined to trigger an unprecedented slump in consumer confidence. In early 2022, shops and eateries were regaining their footing in the aftermath of COVID-19 restrictions and lockdowns along with widespread uncertainty about the future. Backed by state-funded relief packages, many shops had only just scraped through two years of coronacrisis which had left them with only limited financial buffers. The year started with fair demand for retail lease units. Retailers and chains had weathered the coronacrisis, and sentiment was generally bright with expectations of tourists returning and, more importantly, society reopen ing to unleash a wave of pent-up demand among Danes for leisure activities and spending. Russia’s invasion of Ukraine in February, however, instantly sparked anxiety about the future as gas and electricity prices started to soar. Overnight, inflation hit a 40-year high, and interest rates climbed. As a result, consumer confidence suffered a severe dent, with Danish households lower ing their expectations of the future.