Market Report 2022

Retail - Colliers Market Report 2022

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Experience economy making a strong recovery On the heels of restrictions and self-isolation, Danes were hungry for social interaction and ready for experiences when society gradually reopened in step with the rollout of coronavirus vaccinations. In particular the EURO finals, with matches being played on Danish soil, left the popula tion feeling ecstatic, with the crammed national stadium, Parken, providing the backdrop to a celebratory fever pitch that translated into enormous demand for tickets to watch the Danish national team play. In addition, travel restricti ons meant that many Danes converted foreign travel bud gets to other types of spending than usual, e.g., experien cing Denmark in terms of museum visits, sporting events, concerts, etc. In this connection it is important to point out that mainly beauty and personal care retail has started to become a more prominent feature of the retail landscape.

The recovery is manifesting itself in how much Danes spend on experience-related purchases, which was very lit tle during the more comprehensive lockdowns of the coun try but had rebounded to summer-2020 levels by Q3 2021, when the experience economy revived. Nevertheless, it remains to be seen if this high level is a transient pheno menon or reflects a more permanent behavioural pattern, in acknowledgement of the fact that the freedom of assem bling in large gatherings is a brittle commodity perhaps soon to be snatched from us again. This was exactly the case with the renewed restrictions imposed in December 2021, targeting large gatherings, night clubs, etc. We the refore expect to see another revival of the experience eco nomy once restrictions are lifted, just as it was the case in the summer months of 2020 and 2021.

Despite summer season revival, the experience economy has yet to make a full recovery

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

Prior to outbreak of COVID-19

After outbreak of COVID-19

0% 5%

18

19

20

21

Museum, etc.

Cinema

Dramatic art

Sports event

Amusement/theme park

Zoo or animal park

Note: Share of Danish population to have made use of experience economy offers within the past three months. Source: Statistics Denmark.