Discover the mechanics leading retailers in Denmark use to provide shoppers with consistent value.
Denmark is one of several European markets where the discount channel has the largest share. Savvy shopping is deeply ingrained in the culture, with retailers consistently trying to find ways to provide shoppers with value. On our latest trip to Copenhagen and Aarhus, we identified several key mechanisms retailers are using to stay competitive.
Keeping prices low
Price is a key part of the value equation, and one of the first things shoppers seek when purchasing groceries. Since September, Danish retailers have been engaged in a price war, lowering prices of essentials. Lidl led the charge, having started earlier in May, and has reduced the prices of over 300 products in the permanent assortment. Competitors, especially those in the discount space, rapidly followed suit, putting additional pressure on other channels; price matching efforts are underway and called out at multiple touchpoints in store and online.
Leveraging loyalty:
Loyalty also plays a key role when it comes to price, with several retailers providing member-only prices and promotions to their shoppers.
Coop Danmark encourages healthy eating by providing 5% off fruit and vegetables across all of its banners.
Deeper insights on loyalty can be found in our subscriber-only report, Loyalty to live for.
Developing private label:
Denmark’s private label penetration is not as high as that of other markets where discount is the leading channel, such as Spain or Germany. Efforts are being made by retailers across the board to provide more products, and to be on trend. Salling Group’s føtex leverages products from the Netto Protein Lab private label range to meet growing demand for the products. Lidl has recently launched a European-wide rebrand of its pet category, introducing Max and Mila’s world. Keeping its overall offer on the premium end of the scale, Dagrofa’s MENY provides value with its First Price entry label, while REMA 1000 highlights exclusive partnerships for egg, spotlighting sustainability and animal welfare credentials.
Netto is currently in the process of rebranding its private label brands under a single, more recognisable umbrella brand featuring the discounter’s beloved black Scottie on the packaging. This is being communicated to shoppers in store, making the switch more seamless.
New store concepts and additional services
Providing value, of course, is not limited to prices and the assortment, but encompasses the overall shopper experience in store. While so many retailers do have EDLP at the heart of the strategy, the store environment is seeing transformations as well.
Lidl has rolling out its new store format in Denmark, providing shoppers with enhanced navigation, and elevating key categories, such as fresh produce and bakery. Netto is introducing it’s 4.0 store concept, moving away from a hard-discount environment by improving navigability and expanding the assortment to meet more shopper needs. Coop’s 365discount is also piloting a new concept with an updated layout, visual identity and assortment. All of these development point towards the continuous blurring of lines between discount and supermarkets.
Additional services abound in Danish stores; from the very popular package collection service to a broad and beloved foodservice offering, stores have become hubs to fulfil multiple missions beyond pure grocery shopping. Coupled with increased investment in e- and quick, commerce, stores now serve a much broader purpose. Salling Group is also ensuring that its network can remain operational in case of unexpected emergencies, with 51 emergency stores planned across the nation.
What you can learn:
The biggest lesson from Denmark is that winning on value is no longer about being cheapest. The retailers gaining attention are those combining price credibility with strong loyalty ecosystems, differentiated private label and a more engaging shopping experience. Some key takeaways to consider:
For retailers:
Lead with visible, everyday value, not just promotions. Reinforce price credibility through targeted investment in key value items, clear price matching communication, and member-only offers that give shoppers a reason to stay loyal, even in a highly competitive environment.
Use loyalty programmes to drive behaviour, not simply reward it. Link loyalty benefits to strategic objectives such as healthier baskets, higher visit frequency, larger basket sizes, or increased engagement with key categories.
Build stronger private label architectures that balance value and differentiation. Focus on own-label ranges that meet emerging shopper needs, such as health, sustainability, convenience, and premiumisation, while strengthening brand recognition and trust.
Broaden the definition of value beyond price. Invest in store experience, convenience services, omnichannel capabilities, and mission-based shopping solutions to create reasons for shoppers to choose your business over competitors.
For suppliers:
Prepare for intensified value scrutiny. Demonstrate clear price-pack architecture, category value contribution, and shopper relevance to protect distribution and support retailer value agendas.
Create retailer-specific solutions for loyalty programmes. Develop exclusive products, targeted offers, and personalised promotions that help retailers increase shopper engagement and retention.
Collaborate on private label growth rather than viewing it solely as a threat. Identify opportunities to manufacture, innovate, or bring category expertise that helps retailers expand their private label portfolios while maintaining overall category growth.
Align innovation with value-driving trends. Focus investment on areas where shoppers see tangible benefits, such as health, sustainability, convenience, and quality, ensuring innovation remains relevant in a value-focused market.