Colliers Market Report Denmark 2023

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Retail - Colliers Market Report 2023

Hotel I ndustrial & logistics Retail Residential Office

Home delivery soon offered on all purchases Online sales had been accelerating for years, mainly due to the COVID-19 lockdowns, when, in 2022, fewer Danes shopped online, due partly to the fact that shops only in the early months of the year were subject to the restric tions marking the two previous years, partly to a drop in overall spending in the final months of the year. H1 2022 online sales were nearly on a par with H1 2021 sales, whereas the prospect of recession seemingly put a damper on spending in H2 2022. However, e-commerce is widely believed to see contin ued growth in the long term. Easily navigable websites are therefore a key supplement to brick-and-mortar shops if the latter are to compete with strictly online retailers. However, to be a fully-fledged competitor to online retail ers with large stocks, a brick-and-mortar shop is required to display a selection of goods that matches its website. Some chains will therefore potentially demand larger shop units. The list of goods for home delivery is becoming longer: In the past, it was mostly about takeaways, but shops are now increasingly embracing the service, so far mainly in terms of food and drink, e.g. from bakeries, kiosks and candy stores, but several fashion shops have also started to latch on to the Wolt delivery service to support tradi tional sales. This further increases the demand for cen trally located lease units because the real-life shop is required to handle a possible increase in demand trig gered by the additional sales channel.

only offered to customers in the shop’s immediate catch ment area. It is rather a matter of sales “switching” sales channel: In the past, the customer entered the shop, today the customer opts for convenience, that is, the conven ient option of home delivery. Nevertheless, home delivery may strengthen the shops that offer this add-on service. If Wolt and similar businesses should gain a foothold as a delivery platform for shopping goods too, retail units in secondary locations could potentially attract more inter est. Strong footfall is no longer a key parameter, always provided the shop is located relatively close to the cus tomers. If the trend really takes hold, retail tenants will increasingly zoom in on secondary locations where it is possible to achieve lower rents than in high-street and other prime locations. Still in its early stages, the trend is seen mainly in Copenhagen.

The phenomenon is not believed to render traditional shops redundant as the home delivery service is usually