According to TV2, new data shows that the number of physical retail stores in Denmark continues to decline, while SMVdanmark, which represents small and medium-sized enterprises, warned that there are no signs that this trend will stop or reverse in the coming period.
A significant decrease in the number of stores
A study by SMVdanmark showed that the number of actual retail stores across Denmark was 14,446 in 2024, a decrease of 1,170 stores compared to 2020.
The figures reflect the continued decline of the country's traditional retail sector, meaning that Danish consumers now have far fewer physical stores to shop at than they did a few years ago.
Warning of economic and social repercussions
The organization quoted its head of business, Kasper Munk Rasmussen, as saying that the closure of shops not only affects business activity, but also extends to the local community and the economy in general.
Rasmussen said: “When shops close, we lose jobs and activity in city centers, and we lose part of what makes local communities attractive places to live and do business.”.
He added: “These are developments that should concern politicians at both the local and national levels.”.
Call for a plan to save the retail trade
Kasper Munk Rasmussen called on politicians to cooperate with the business sector in order to prepare a plan that includes initiatives that will facilitate the management of retail businesses in Denmark.
He explained that among the steps required are reducing bureaucracy and limiting regulatory restrictions, along with making greater efforts to accelerate digital transformation within stores.
He said: “It’s about, among other things, cleaning up the bureaucracy and regulations, and doing more to digitize stores.”.
rural areas and regions most affected
The study showed that the phenomenon of shop closures affected all parts of Denmark, but rural municipalities, outlying municipalities and regional cities were the most affected by these developments.
According to the data, the municipalities of Samsø, Hørsholm, Albertslund, Brønderslev and Silkeborg recorded the greatest losses in the number of shops during the period between 2020 and 2024 when calculating the number of shops lost relative to the population.
Small shops are facing increasing pressure
Kasper Munk Rasmussen explained that the shops that are disappearing from the market are mostly small, locally owned businesses.
He said that these stores are under increasing pressure as a result of rising costs and administrative burdens, as well as fierce competition from major electronic companies and international entities operating online.
He added: “Therefore, better conditions and a better framework are needed if we are to continue to have vibrant commercial streets across the country.”.
Sharp decline in electronics, fashion and shoe stores
The study showed that the decline was most pronounced in specific sectors, with the number of electronics stores, clothing stores and shoe stores in particular decreasing in recent years.
E-commerce does not compensate for the losses of traditional stores.
SMVdanmark stressed that this development cannot be explained solely by consumers moving to online shopping.
The organization explained in a press release that there is not one of the ninety-eight Danish municipalities where the growth of e-commerce has been able to offset the loss of physical stores.
She added that the number of online stores also decreased in 59 Danish municipalities, indicating that the decline is affecting the retail sector more broadly, and not just traditional stores.
