In June 2024, Denmark reported an inflation rate of 1.8% compared to the same month the previous year, according to Statistics Denmark. Core inflation, which excludes volatile items such as food and energy prices, was slightly lower at 1.3% for the same period.
Despite these relatively low inflation rates, consumer confidence in Denmark has declined. The consumer confidence indicator for June 2024 was -4.4, reflecting a negative sentiment among consumers regarding the current and future economic situation.
Credit card data indicated that spending, excluding energy, increased by 1.0% in June 2024 compared to the same month the previous year. However, since consumer prices excluding energy increased by 1.3% over the same period, real spending excluding energy effectively decreased by 0.3%.
In July, Danske Bank expressed surprise at the setback in consumption given the solid increases in real wages and consumer confidence observed during the second quarter of 2024. Despite this, the bank still anticipates decent growth in consumption for the remainder of the year, although the June figures suggest occasional setbacks within an overall strengthening trend.
At the end of 2023, the Danish Chamber of Commerce (Dansk Erhverv) highlighted positive employment figures as a notable success story. The number of individuals employed in Denmark grew by 1,300 in October 2023, with public sector jobs increasing by 700 and private sector jobs by 600. Over the year, employment increased by 33,700, with growth recorded in 11 out of 12 months. This growth persisted despite challenges from higher interest rates, inflation, and a slowdown in exports.
Cross-border shopping has significantly influenced the Danish retail sector and the broader economy. A new report indicated that Denmark missed out on over DKK 5 billion (€670 million) in VAT and excise duties due to cross-border trade in 2023.
This trade, involving Danes shopping in neighbouring countries such as Germany and Sweden, is valued annually between DKK 17 billion (€2.28 billion) and DKK 18 billion (€2.41 billion), according to the trade association De Samvirkende Købmænd (DSK).
In addition to economic challenges, Danish retailers have faced increasing incidents of shoplifting. In the first half of 2024, a total of 13,856 shop thefts were reported to the police, representing an almost 88% increase in reported cases from the first quarter of 2021 through the second quarter of 2024, as noted by Dansk Erhverv.
Here's an overview of the top five supermarket retail chains in Denmark, according to their most recently-available full-year turnover. All data is supplied by Retail-Index (www.retail-index.com).
1. Salling Group
Turnover: €8.94 billion (2022)
Salling Group is the largest supermarket retail chain in Denmark with an annual turnover of €8.94 billion as of 2022.
Originally known as Dansk Supermarked, Salling Group operates the brands Bilka, føtex, Netto, Salling and online with Bilka.dk, Salling.dk, føtex.dk, wupti.com and føtexdagligvarer.dk.
Dansk Supermarked changed its name to Salling Group in June 2018, following the acquisition of the business by the Salling Foundation. The group has 653 outlets in Denmark.
Read More: Salling Group Appoints Peter Bang As New Finance Chief
2. Coop
Turnover: €3.76 billion (2021)
Coop Denmark is a cooperative, owned by more than 1.4 million members.
It recorded an annual turnover of €3.76 billion in 2021 and currently has an estimated 1,150 outlets in Denmark.
Its banners include Dagli'Brugsen, Fakta, Irma, Kvickly, and Superbrugsen, however the group recently announced plans to consolidate these brands.
Read More: Coop Denmark CEO Kræn Østergaard Nielsen Talks To ESM
3. Reitangruppen
Turnover: €3.4 billion (2021)
Reitangruppen recorded an annual turnover of €3.4 billion in 2021.
The Norwegian conglomerate has 537 outlets in Denmark. Its banners include 7-Eleven and REMA 1000.
4. Dagrofa
Turnover: €2.4 billion (2021)
Dagrofa recorded an annual turnover of €2.4 billion in 2021. It operates 511 stores in the country.
The Danish retail company operates within three business areas – retail, wholesale and foodservice. Its banners include Kiwi, Let Kob, Meny, Min Kobmand and SPAR.
Read more: Dagrofa Logistik, Løvbjerg Extend Partnership For Six Years
5. Lidl
Turnover: €530 million (2021)
Lidl reported an annual turnover of €530 million in Denmark in 2021.
Part of the Schwarz Group, Lidl has had a presence in Denmark since 2005 and currently has 133 stores in the country.
About Retail-Index
Retail-Index is a specialist supplier of management information on consumer retail markets, provided by Veraart Research Group in the Netherlands. Its mission is to supply managers with up-to-date key information on retail markets in Europe and support them in their international expansion.
The company dates back to 1964, when it started as a market research and marketing consulting company for consumer products and services. In 1989, it started publishing written reports on various retail sectors in Europe. As of 2005, it publishes its information on retailers through the online database and curated datasheet exports available on www.retail-index.com. A team of researchers manages the data to reflect upon current developments in the markets, collected from an extensive number of sources.
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© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
