A Glimpse into the Crystal Ball: What does the Future of the Retail market look Like?
Predicting the future of retail has historically proven to be a challenging task. Nevertheless, this is precisely the undertaking JLL embraces in “Prepare Yourself for the Future of Retail.” The report is based on interviews and workshops conducted as part of their Future Vision Program, supplemented by national insights from JLL’s international network of partners. Helle Nielsen Ziersen, Head of EDC International at Poul Erik Bech, JLL’s Danish partner, explains:
”Drones and robots will play an increasingly significant role in the retail sector. While robotic technology often requires a substantial upfront investment, it helps reduce fixed costs in the long term. In the U.S., Walmart has developed a concept in Dallas where customers within a 15-kilometer radius can have groceries delivered by drone instead of a traditional courier. Starship Technologies has also seen success with automated delivery, with its six-wheeled robots having distributed over six million parcels in countries such as the United States, the United Kingdom, and Finland. In Asia, several restaurants operate entirely without human staff — robots prepare the food, serve guests, and handle dishwashing. In Denmark and across Europe, we are more cautious about full automation, as personal service remains highly valued by customers. However, in the future, we are likely to see robots increasingly take on practical tasks that do not involve direct customer interaction.”
Hybrid shopping
Hybrid shopping has also gained popularity. Frank Heskjær, Head of Retail at EDC Poul Erik Bech in Aarhus, explains:
”Two out of three Danish retail customers conduct online research before visiting a physical store. As a result, several well-known retail brands have made significant investments in the latest AI and Augmented Reality (AR) technologies to personalize and optimize the customer journey. For example, H&M and Zara have experimented with AI assistants and digital twins, which can analyze customers’ body types, track their purchasing preferences, present tailored clothing suggestions, and even enable virtual try-ons from home — saving time during in-store visits. Danish retailers such as Matas, Søstrene Grene, and Salling Group have also made substantial advances in AI. Notably, Matas piloted an AI agent in stores located in Aarhus, Copenhagen, Odense, Aalborg, and Horsens, which assisted staff in navigating the product catalog, thereby enhancing the level of customer service.”
More Integrated Urban Spaces on the Way
In the future, retail stores will be less concentrated in large commercial zones and shopping centers, and instead increasingly integrated into local communities. This is a trend recognized by Thomas Høegh Mogensen, Client and Relations Director at EDC Projekt Poul Erik Bech, who is involved in numerous project sales and leases across Denmark:
”In larger residential developments or densely populated areas—primarily in Greater Copenhagen—retail shops are often established at street level. This not only provides practical benefits for residents but also adds vibrancy and dynamism to the local environment. For retailers, it often results in a loyal customer base and close familiarity with the people who shop there. A prime example is Rødovre Port, which comprises 534 residential units, where we were responsible for the initial leasing and continue to manage the re-letting of the apartments. The area now features well-known retailers such as Normal, Lagkagehuset, and Spar, positioned at the heart of the urban landscape. Another example is Coop Byen in Albertslund, where we are currently launching the leasing of 349 residential units. Over the coming years, it will evolve into a vibrant district where housing and retail coexist side by side. This integrated approach is also playing a larger role in the planning phase: for many new developments and building rights, property developers are increasingly focused on ensuring that the retail component is secured before a project can be approved and brought to life.”
Even more Sustainability
Consumers will also place even greater demands on retail companies’ efforts in sustainability. This applies to the entire value chain, product initiatives, and, not least, the choice of locations. Joseph Alberti, Head of Research at EDC Poul Erik Bech, explains:
“JLL’s data shows that 79% of consumers believe that companies should make a positive contribution to the local communities they are part of. The choice of locations and properties plays a crucial role, as approximately 60% of CO2 emissions in cities come from buildings. However, our annual survey of expectations reveals that property owners and tenants in Denmark’s retail sector still hold differing views. Only 45% of investors believe that tenants are willing to pay more for a sustainable lease — yet the figures also show that as many as 64% of tenants are willing to pay extra for a sustainable property. Therefore, investors should consider energy-optimizing their retail properties. This can increase rental income, reduce costs, and improve both the owner’s and the tenant’s ESG performance.”
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The Future of Retail – 5 key trends
- Hybrid Shopping and Technology in the Customer Journey
AI and AR (Augmented Reality) will revolutionize the shopping experience. Digital twins, AI-assisted clothing selections, and virtual fitting rooms can make shopping both faster and more personalized – even in Denmark, where 2 out of 3 retail customers already conduct online research. - Robots and drones take over
Automation is on the rise – especially outside Denmark. Examples from Walmart and Starship Technologies demonstrate how drones and robots can handle everything from deliveries to cooking. In Denmark, robots will primarily take over practical tasks behind the scenes. - Retail Integrates into Urban Life
Future stores will increasingly become a natural part of residential areas – at street level and as an active element of the urban environment. Projects such as Rødovre Port and Coop Byen illustrate this trend. - Sustainability as a Competitive edge
Consumers expect retail companies to contribute to local communities and reduce their carbon footprint – including through the selection of sustainable properties. However, there is a gap between owners and tenants regarding the willingness to pay extra for green solutions. - Greater local engagement and community
Retail is moving away from large centers and closer to consumers – both physically and in terms of values. It’s about being part of a local community, not just selling products.
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