Apparel and Footwear Specialist Retailers in Denmark

PROSPECTS

Shift to online shopping

Apparel and footwear specialist retailers saw the most marked decline amongst non-grocery specialist retailers in 2018 and is set to be the poorest performer over the forecast period. Store-based apparel and footwear sales are being hit particularly hard by the rise of internet retailing, as the product category is well-suited to the demands of e-commerce and is popular amongst the younger demographics that are the keenest online shoppers.

Focus on low pricing

The impact of difficult economic conditions and the expansion of economy-orientated retailers on Danish consumers’ perceptions of value-for-money are being consolidated by the rise of internet retailing, which offers aggressively low pricing and the capacity to compare prices across multiple retailers. In this environment, apparel and footwear specialist retailers with an image founded on affordability, such as H&M and Bestseller, are amongst the strongest performers.

Fewer stores with evolving roles

While some apparel and footwear specialist retailers, including Bestseller and Tøjeksperten, expanded their store networks in 2018, the channel’s overall store network witnessed ongoing decline. The fall in outlet numbers is being driven by the general shift in store-based retailers’ strategies towards the development of their online operations, a process that is set to continue during the forecast period, leading to further contraction of the store network.

COMPETITIVE LANDSCAPE

H&M retains lead

H&M Hennes & Mauritz retained the lead in apparel and footwear specialist retailers in 2018, having maintained a trend of year-on-year share growth throughout the review period. H&M’s relative strength in the market is founded on the appeal of its competitive pricing in an environment in which perceptions of value-for-money have been changed by challenging economic conditions, the expansion of discounters in grocery retailing and the rise of internet retailing.

New entrant in 2019

The Japanese apparel retailer, Uniqlo has announced plans to open its first store in the Danish market in spring 2019. The store, which is set to be located in Strøget, a pedestrian shopping zone in the centre of Copenhagen, will cover around 1,400 square metres and offer the company’s LifeWear concept products for men, women and children across three levels.

Domestic company shows strong growth

Domestic company, Bestseller, the second largest player in apparel and footwear specialist retailers, was amongst the strongest performers in the channel in 2018. The company operates multiple brands in the Danish market, including Vero Moda, Only, Jack Jones, Name It, Vila and Bianco Footwear.

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