Distribution Networks in Denmark
Types of Outlet
- Hypermarkets, supermarkets and mini-markets
Located on the outskirts of towns. They sell foodstuffs and non food products. Mini-markets are smaller and located in town.
Bilka, Dansk Supermarket.
- Specialized hypermarkets
Hypermarkets specialized in one family of products.
- Department stores
Located in the town center on several floors. They have various specialized departments.
Illum, Magasin du Nord.
- Hard discount
Mainly for food. They sell products of the distributor's own brand or no brand at all. People prefer them for their discount prices.
- Small shops
Specialized local shops: grocer's, butcher's, fishmonger's, greengrocer's, cheese shops, delicatessens, baker's, cake shops, florist's. People prefer them for the quality of their products, human contact and advice.
- Cash and Carry
Hypermarkets reserved for professionals.
Metro (only in Danish)
Evolution of the Retail Sector
- Growth and Regulation
The Danish population has one of the highest income levels in the European Union with a per capita GDP of 30,930 dollars in 2004. The Danish consumer therefore is one of most demanding in Europe.
Retail trade reached EUR 30,6 million in 2004 showing a growth of 6,2% as compared to 2003.
- Market Shares
Contrary to other European countries, neighborhood stores play an important role in the Danish distribution market. According to the Danish office of statistics, in 2004 there were 23,573 legal entities registered in the wholesale trade and 26,335 entities in the retail trade.
The mass-market sector is dominated by two groups:
- the consumer co-op F.D.B, which is the leading Danish distributor (with 33% of the market-share in 2003) and owner of many stores like Kvickly, Brugsen, OBS, Irma and Fakta. F.D.B supplies 1,200 points-of-sale (hypermarkets, supermarkets, mini-markets and discount stores).
- the group Dansk super-marked with 465 points-of-sale; its main stores being Bilka and Netto
The 3 large chain stores in Denmark are:
- Illum. Although competitors to one another, Illum and Magasin du Nord belong to the same group of Icelandic origin known asBaugur Groupe.
- Salling, part of the Dansk Supermarked group.
Shopping centers and malls generated a sales turnover of EUR 5,5 billion in 2003 equal to 20% of the retail trade. The main shopping center is Field's Copenhagen with an area of 115,000 square meters.
The evolution of distribution circuits is characterized by mergers of central buying offices and the creation of new chains allowing their members to supply themselves at lower cost and thus consolidate their positions in the market.
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