January 2020

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The purpose of this blog is to provide a reliable source of business, tax, and accounting information. English is chosen language to ensure coverage for Danish and non-Danish readers. 

Sales the Danish way

January 2020.


We are in the middle of the winter sale season. It is a good time for consumers to stock their wardrobes and a good opportunity for retailers to cash in and get rid of excess stock. How do you manage sales like a local? You need to know how to run sales the Danish way.


Price is one of the 4 Ps in the marketing mix theory: price, product, promotion, and place (E. Jerome McCarthy, 1960). Sales are the time when you lower your price not only to boost your revenue but also to attract new customers to the shop. Sale season allows customers to acquire products that otherwise will be out of their budget, e.g. luxury items, high-end products, or something nice-to-have. As a retailer, if you use sales wisely, you can achieve more than just increasing your revenue.


Traditional sale seasons in Denmark
Traditionally, there are two sale seasons: the winter sales start in the last week of December to the end of January, and summer sales begin at the end of June, around Sankt Hans, and last the whole month of July. Larger shopping stores like Magasin and Illum have two extra midseason sales in spring and autumn.


In the traditional sale season, consumers can restock what they need or desire but cannot pay full price. If you have a retailing business and don’t offer sales now, then your shop will likely stick out among your competitors. Some companies may misuse the perception by faking sales: raising the price and selling at the original price, labelled as the discounted price. The Danish commercial law allows retailers to set prices; it forbids fake sales.


New sale events
Danish retailers quickly acquired new sale events, such as Black Friday, Single Day, and Cyber Monday. Black Friday has grown so much in popularity that it has become a mainstream sale season. In 2019, even supermarkets had Black Friday campaigns.


Sales are the times when the retailer lowers prices for cash. If you are too desperate, you may harm the business in the long term. The retail industry has already experienced a fall in visitor numbers in December sales due to Black Friday.  If you run sales too often, customers will get used to the discounted prices and will not return until the next sale.


Out-of-season sales

Usually, supermarkets run advertising for birthday sales, or local shops celebrate the anniversary of years in business. Danes often joke about businesses that celebrate several birthdays annually. Sometimes, retailers have clearance sales (lagerudsalg), but you are never sure because they have too many stocks or they are dried out of cash. The occasion can be true or not, but the purpose is the same: to cash in.


Sales also signal to your customers, business partners, and competitors about the state of your business. I feel slight pain when I see an “Alt skal væk” sign. It is the Danish version of shop closing sales. When you see it, you know that someone’s dream gets broken; the owner gives up, and the business is now bleeding to death. If you visit one locally, all you can do is buy what you can and say good luck and best wishes to the owner.