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Discount Drives Dansk Supermarked to #1 by 2019

LZRetailytics_2018_KW11_Dansk Supermarked
Photo: LZ
LZ Retailytics forecasts Dansk Supermarked will be the largest grocery retailer in Denmark by 2019.
LZ Retailytics forecasts Dansk Supermarked will become the largest grocery retailer in Denmark in 2019. With retail sales of EUR7.5bn it will outperform current market leader Coop Danmark, which is predicted to generate only EUR7.4bn. The growth will mainly be driven by its Netto discount banner. Meanwhile, rather than looking for any significant expansion, the current market leader is focussing on increasing sales densities and margins.

Alongside Netto, rival discount chains Rema 1000 and Lidl are also expected to take advantage of Denmark’s unquenched thirst for soft discount. Filling the gap left by competitors closing their discount stores, the three will continue to outperform the market and contribute to further expansion of the discount channel. Our forecasts show the discount channel in Denmark will gain two percentage points between 2017 and 2022, reaching 37.5%.

With these discounters offering a comparatively sophisticated assortment, their dominance presents suppliers with future opportunities to sell high volumes of added value products in Denmark.

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Topics: Reitangruppen Dansk Supermarked Dagrofa Coop Danmark (DK)