A market undergoing transformation

Denmark is the second biggest country in Scandinavia, but also the most densely populated with 5.6 mio inhabitants. Over 86 per cent of Danes live in cities. Apart from the capital Copenhagen with over half a million people, the main population centres are Aarhus, Odense, Esbjerg and Aalborg. Most of the country's pet shops are located in or around one of these cities.

Big-box pet stores tend to be thin on the ground in Denmark, with even the leading Maxi Zoo chain opting for retail areas of 400 m2 on average. This is due to the very high commercial rents still being charged, even if these have come down somewhat in recent years due to the recession and its aftermath. The shopping habits of the Danes are another reason why many pet stores have relatively small retail areas, for most people go shopping in their own suburb, even in the big cities. Every district has its own high street with stores sitting side by side. As riding bikes is very popular in Denmark, a large number of Danes do their shopping in this way and the many small independent shops in Danish cities tend to favour this. Although the number of large shopping malls is growing in Denmark too, only a few populous locations have the necessary footfall for these.

A large number of pet stores provide a local service for the people living in the area. They have a maximum retail area of between 150 and 200 m2, yet most of them still manage to stock a full range including live animals. The dearth of space means that many of these shops tend to specialise in birds, small animals or aquariums, because they are not able to offer an extensive range of dog and cat food or accessories.
Opinion is divided when it comes to a breakdown of the Danish pet supplies market. Retail experts to whom PET worldwide has spoken point out that dog and cat food accounts for around 60 per cent of sales by the pet product trade. They argue that Danish supermarkets tend to have small or medium-sized retail areas and generally only carry a small range of pet food products. According to these experts, this is one reason why supermarkets don't assume the dominant role in Denmark that they play in many other countries. 

On the other hand, the market research company Euromonitor International asserts that the…