October 27, 2021

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Grocery, price |  Price Shock in Online Grocery Stores: - You Won't Survive

Grocery, price | Price Shock in Online Grocery Stores: – You Won’t Survive

Online newspaper Comparing the prices of online grocery stores reveals price differences of several hundred kroner.

In the price test, we compared nearly 40 identical foods from Coop Hjemlevering, Oda, and Menys hjemlevering.

Read the full test in the box.

Oda takes a superior victory. The online store is NOK 245 cheaper than the most expensive store, Coop Hjemlevering.

But it’s not just Coop Hjemlevering that pays well. If you get the cart from Meny, you will receive an additional charge of 97 kroner.

They won’t live up to 20% more expensive. They offer no better product than Oda, according to grocer Austin Fross at the Norwegian School of Management (NHH), to Nettavisen.

I understand what the expert is saying, but he should take into account that creating Coop Hjemlevering was almost a world-record online grocery store creation, says Harald Christiansen, Coop’s Director of Communications.

Price comparison shows that Findus’ frozen fish gratin fetches an extra price of 19kr at Coop Hjemlevering and 15kron for Meny.

At Coop Hjemlevering, the price jump on the same fish gratin corresponds to 45 percent.

Everything from meat products, chocolate, soft drinks and butter, get strong price increases — up to 56 percent for similar goods. Up to 81 kroner separating the price of a kilo of bacon stranda.

Online newspaper price test shows:

Oda is much cheaper – you can save 245 kroner from the total amount.

Oda is the cheapest at 36 out of 37 pieces.

Coop Home Delivery is 17 percent more expensive in the cart.

The menu costs 96 kr more for the same cart – which corresponds to a 10 percent surcharge.

Additional price of up to SEK 81 per kilo of Stranda Bacon.

Between 10 and 19 kroner, the price jumps on 7 out of 37 items.

Significant price differences on, among others, Stratos, Stranaskinki, Vindus Fiskegrating and Nidar Favorit.

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A headache for competitors

A price comparison in online newspapers shows that Oda keeps its promise of the same prices as the lower price chains, Rema, Extra and Kiwi.

– This means that Oda has stuck to the three low-price chains, while the other online concepts, Coop Hjemlevering and Menys hjemlevering, operate in the supermarket sector, says the economics professor.

Several price tests show that department stores are often fifteen to twenty percent more expensive than lower-priced chains.

The grocery guru doesn’t think Oda’s progress won’t go unnoticed by Norgesgruppen, which is behind the low-priced Kiwi and Miny chain.

Or Coop with Extra, Coop Mega and Obs supermarkets, among others, in the stable.

He believes the comparison shows that supermarkets have a strong competitor that is cheaper. The expert believes that Oda’s competitors are now thinking a lot about how to solve the price defeat.

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Idiotskatt

Grocery experts previously stated that customers who choose to shop at large supermarkets, such as Meny, are not price sensitive.

Online newspaper price testing of supermarkets, Coop Mega, Meny and Spar, showed a price difference of nearly 50 percent, and a price increase of NOK 28 per kilo, for the same item in the competitor.

– I think the stores are speculating that customers have no market knowledge about the price differences in the various supermarkets. Thus, there is deliberate speculation by having different prices for the same products, economics professor, Tor W Andreassen, at NHH, told Nettavisen.

Wallen Andreessen confirmed, among other things, that the Mini has built over time as a Rolls-Royce in the grocery segment. The photo made it possible for the chain to take what he called a fool’s tax.

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“Customers are willing to pay more for the same product because of the brand,” he said.

With Oda’s entry as a low-priced chain, it appears that the “idiot tax” could lead to worse times in the meeting.

If you’re shopping for food online, you’ll get a wider selection of all the providers, and then find it hard to argue that you’re charging an extra fifteen percent for the same item, Foros believes.

He predicts that both Menys e-commerce and Coop Hjemlevering will lose market share to Oda.

For information, Oda has 7,500 items in its range. In the list, it ranges from 7,000 to 12,000. Coop Home delivery varies from 6,000 to 12,000 items. The list asserts that its average is 10,000 items.

What is common to all the chains is that the range of products is the largest in the big cities, and the worst in the smaller ones.

This is according to the information players provided by Nettavisen.

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Advance competitor

It is not a good idea to be ten to seventeen percent more expensive on a basket of foods that you sit on at home and order. If you’re constantly shopping online, it could be huge amounts, says Foros.

He also believes that low price chains should fear Oda, both in terms of low prices and selection and having goods delivered to customers’ door.

Menu and Coop have a greater scope. Unlike Oda, which is delivered primarily in eastern Norway, Coop Hjemlevering is the national framework. Mini also delivers in large parts of Norway.

– They may refuse to lower prices because the Mini and Cobb Hemmlering don’t have competition elsewhere in the country, he says.

Also read: Up to 70 percent surcharge: Made to deceive consumers

adjust the price

This is how Harald Christiansen, Coop’s head of communications, responds to the criticism.

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– Coop Hjemlevering was set up at record speed 1.5 years ago to help Coop customers shop during the pandemic, he says and adds;

– Unlike Oda and Meny, 96 percent of Norwegian people can use our service. They can also during the entire pandemic. He says it was important to the clients, who are also our co-owner.

Christiansen isn’t surprised that Oda beats Coop Hjemlevering on price. He points out that Oda is a pure online store that has invested in technology. At Coop Hjemlevering, all items are hand picked up by the staff. So it is believed that their prices should be compared to supermarket prices.

– We will continue to compete in price against players with whom we naturally compare ourselves, and therefore we are constantly working to improve the service. He says, we are not happy with the result, assures they will adjust prices now.

Nina Horn Hynne, Meny’s director of communications, wouldn’t comment on the grocer’s suggestion that they wouldn’t survive if they didn’t cut prices.

– We have the largest selection and the freshest products and deliver goods to your door in much larger geographical areas of the country. We have online stores in Trondheim, Stavanger, Bergen and Kristiansand, but also in Tromsø via Eddie Handel, Horn Hein tells Nettavisen.

Remember that customers who shop at Meny’s home delivery have an average of 10,000 items, including a selection of fresh produce where they can buy exactly the amount they want. Unlike Oda, where merchandise is picked using robots and machines, merchandise in Meny is actually picked up in stores.