Market Report 2022

Colliers Market Report 2022

67

Hotel Industrial/logistics Retail Residential Of f ice

New concepts exploit secondary micro locations

COVID-19 caused a dramatic shift in the e-commerce market

10% 15% 20% 25% 30% 35% 40% 45% 50%

The altered functionality also supports another concept that is gaining ground, namely physical shops serving as last-mile distributors, where a courier picks up the item in the physical shop for home delivery. Still in the early start-up phase, the concept has so far involved mainly grocery deliveries. However, during the EURO football finals in Copenhagen, for instance, some sports shops, to meet surging demand, were seen to sell Danish natio nal team jerseys and other fan gear via the Wolt platform, usually offering mainly takeaway deliveries. As more platforms emerge in Copenhagen, such as Gorillas and Kavall, also offering home deliveries, we expect other shops to follow suit in near future, exploi ting the new options made possible by these platforms. However, the concept is not expected to draw in new user groups but rather to retain the existing base of custo mers living in the shops’ immediate catchment area who prefer delivery to going to the actual shop. First and foremost, the objective of the concept is to meet the demand of customers that prefer to shop online, while ensuring that the brick-and-mortar shop is not made redundant by e-commerce growth. For shops, the concept entails several configuration requirements as the size of the storage facilities must be sufficient to meet the demand for last-mile distribution. In conse quence, the described concepts may give lower priority to sales areas, with storage facilities and storage space becoming weightier localisation parameters. If truly gai ning momentum, the concept may not only change area requirements, but also strengthen demand for premi ses in central but not necessarily prime locations around the Copenhagen high street, Strøget. This is expected to somewhat ease the pressure registered on rent levels in these locations.

0% 5%

13 14 15 16 17 18 19 20 21

Note: Share of businesses offering online sales to private consumers (Danish trade and transport sectors). Source: Statistics Denmark

Senior citizens increasingly active online due to the COVID-19

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

10 11 12 13 14 15 16 17 18 19 20 21 60-74 yrs 40-59 yrs 20-39 yrs 16-19 yrs

Note: Share of Danish population to have shopped online within past three months. Source: Statistics Denmark