Traveling clothier salesman Mads Andersen-Skjern arrives in Korsbæk with his little boy Daniel and sees opportunities when faced with the inept draper Albert Arnesen and this small sleepy town where the old families define the pace and virtue. Receiving only haughty condescension from the upper-class, Mads finds local allies in the family of pig trader Oluf Larsen and his wife Kathrine, who has more money than meets the eye.

Arnesen's store is losing money hand over fist, so when he learns that his manager, Mr. Schwann, has inherited a large sum, he persuades him to become his partner; the snobby Mr. Schwann gleefully throws his entire inheritance into Damernes Magasin, prolonging the inevitable for a few months.

Arnesen is in the shambles, and even Varnæs cannot aid him financially any further.