The history of the firm which founded the Valley's first supermarket, Nielsen's Market east of Solvang along Highway 246 dates back to the birth of the Danish-American colony of Solvang itself. An outgrowth of the oldest store in Solvang Nielsen's Market began as the town's first store founded in 1911 by Sophus Olsen. (Now the site of Rasmussen's department store).

In 1912 Marcus Nielsen arrived from Dannevang, Texas and purshased a part of the store . In 1914 Marcus became the sole owner and named the store the Marcus Nielsen store. In 1921 the store was purchased by Marcus Nielsen's son Axel, daughter Clara and Jens Rasmussen. The store name at this time was Nielsen and Nielsen until Rasmussen left for college and Clara became Mrs. H.G.Petersen. The name changed to Nielsen and Petersen. On January 1, 1947 upon Rasmussen's return to the business and purchase of Clara's interest the name changed again to Nielsen and Rasmussen.

The final name change came in 1958 when Rasmussen opened Rasmussen's of Solvang Department Store in half of the building on Copenhagen Dr. Axel Nielsen continued to direct the operations of the grocery store and named it Nielsen's Market.

In 1959 the new and present Nielsen's Market location was opened on the corner of Alamo Pintado Rd. and Highway 246.