Focus report Aarhus - Colliers Denmark 2024

RETAIL - COLLIERS FOCUS REPORT AARHUS 2024

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HOTEL INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

Shift in consumer behavior affecting the retail segment

On a national level, 2023 was better for retail and restau rants than many had predicted. Retail sales increased on the back of a strong second half of the year, making 2023 better than expected. This is despite rising interest rates and uncertainty, which have already had an impact on Danes’ spending patterns. These suggest that Danes are buying fewer goods but spending more mon ey on experiences, such as travelling and dining

Sct. Clemens Torv

out. Aarhus continues to struggle to attract new international brands but is experienc ing demand from national players.

Salling

Despite several positive trends, changing consumer behaviour has challenged several retail chains, which have been forced to reduce the number of stores. In general, it seems that many are experiencing pres sure on their bottom line because of an increased cost base without a corresponding increase in reve nue. This has proven to be the case in Aarhus, where there is an increased vacancy rate in the city centre. One of the locations where vacancies are visible is Strøget, which is made up of Ryesgade, Søndergade, Lille Torv and Store Torv, and is one of the prime and most attractive locations for shopping goods stores in Aarhus. Nevertheless, several stores have had to close here, and we are aware of several cancelled leases. In 2023, the design

Søndergade

Tenanted shop units Vacant shop units

Note: Count of retail vacancies and shops at Ryesgade and Søndergade, Aarhus, at year-start 2024. Source: Colliers

Ryesgade

and furniture house Paustian filed for bankruptcy, and the store subsequently held a going-out-of-business sale in their iconic setting at Lille Torv.

Aarhus Central Station