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Bräuner A/S HAUGEN-Gruppen AS Denmark Valora Trade Denmark A/S

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Area 43098 sq. km
Capital City Copenhagen
National Currency Krone
Population(2012) 5.51 Million
Population Density 128.60 people/km
Retail market comments
Market entry through an acquisition is limited because many small scale retailers have already merged. Entry through an organic led strategy is equally challenging due to the oversupply of retail space.

Such a high concentration of retailers creates a challenging negotiation environment for suppliers.

The oversupply of retail space may limit the growth of large store formats. Retailers need to adapt new store concepts around this apparent lack of space in similar ways to Dansk’s launch of the Døgn Netto discount/convenience hybrid store format.

The Danish grocery sector has a high level of penetration by both discount and supermarket stores. Up to now, there has been little evidence of the same sort of format innovation and new store concept design like that in neighbouring Norway and Sweden i.e. ICA’s compact hypermarket, Axfood’s Super Willys stores.

Private label development is expected to increase as hard discounters drive competition in Scandinavian markets.