Food and Drink Internet Retailing in Denmark

PROSPECTS

Food and drink internet retailing expanding strongly

Food and drink was the fastest-growing area of internet retailing in 2018 and is set to remain amongst the most dynamic product categories over the forecast period, with only the much smaller traditional toys and games category expected to see sales rise more rapidly between 2018 and 2023. Food and drink internet retailing is benefiting from the growing demand for time-saving convenience amongst consumers with increasingly hectic lifestyles, which have led to a move away from regular, large-scale shopping trips to physical out-of-town stores.

Online operations offer opportunities for consumer base development

In a crowded and rapidly evolving grocery retailing marketplace in which boundaries between established channels are becoming increasingly blurred, retailers are looking to build brand identities and consumer bases on values that are not localised. The potential for such development is being enhanced by an upmarket shift in consumer demand that is seeing factors such as health and ethics taking an increasingly influential role in purchasing decisions.

Efficient and flexible delivery key to channel development

With convenience so central to the rapid expansion of food and drink internet retailing, ensuring flexible and efficient home delivery is a key competitive strength. Providing delivery services that fit with consumers’ hectic lifestyles helps internet pure play retailers such as Nemlig.

COMPETITIVE LANDSCAPE

Nemlig continues strong growth

The largest food and drink internet retailer, Nemlig was also amongst the most dynamic in the final year of the review period. In 2018, the company maintained a trend of double-digit year-on-year value growth that had persisted throughout the review period, during which it rose from eighth to fourth in the rankings in overall internet retailing.

Coop Danmark introduces new app to enhance convenience of delivery

Coop Danmark maintained strong growth in the final year of the review period. As it worked to develop the upmarket image of its Irma brand, with new stores including street kitchens and specialist departments for vegan and vegetarian products, the company also introduced a new delivery app at its Irma stores intended to make online shopping “easy, cheap and fast”.

Aarstiderne targets key consumer interests and concerns

Aarstiderne rose one place to become the 12th largest player in overall internet retailing in 2018. The company has tapped into the growing interest in organic produce underpinned by rising consumer concerns about the impact of chemicals such as artificial pesticides on human health and the environment.

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