(Nettavisen): Compare Nettavisen Wholesale Gigaboks Shopping Basket with Low Price Kiwi. Prices in Kiwi have been converted to volume and volume in Gigaboks.
The 27-piece shopping cart of identical brands consists of toilet paper, sweets, chocolate, washing machine, dishwasher powder, toiletries, frozen goods, tea and spices.
Giga box is more than 1,300 kroner cheaper in the cart than Kiwi. The price test shows that you can save from a few kronor up to 280 kroner on one item.
– I think this is just the beginning, if this is what consumers desire, it will attract many more customers, says Ron Nikolaisen, who runs Gjerrigknark.com, to Nettavisen.
The price comparison shows, among other things:
- Soy sauce and barbecue sauce are cheaper 283 and 155 kr.
- You pay 235 percent more for oregano over kiwi.
- More than 70 kroner cheaper for Snickers and Twix
- Almost 45 percent cheaper for Omo washing powder.
Read the full test in the box
Gigaboks offer themselves at Swedish prices
Norway’s largest grocery company, Norgesgruppen, recently launched its Gigaboks wholesale concept at a metro hub in Lørenskog outside Oslo. The new chain specializes in bulk packaging of everything from meat, toilet paper, frozen goods, dry goods and sweets at deeply discounted prices. In addition, the chain sells a number of Asian products and a very good selection of frozen products.
Regarding the launch, Norgesgruppen stated that they wanted to take the fight to cross-border trade, promising a price level in line with Swedish grocery stores.
The goal is to try to take the fight to the Swedish trade. Many of those who go to Sweden do so for the trip, and there’s something we want with Gigaboks as well – to become some sort of destination,” Kine Søyland, director of communications at Norgesgruppen told Nettavisen.
– Not everything is cheaper in Gigaboks
I doubt Gigaboks are cheaper than Kiwi and Rema 1000 on all goods, says Øystein Foros, professor of economics at the Norwegian School of Management in Nettavisen.
This is also in line with the price survey conducted by Nettavisen. The cart showed that 3 out of 27 items cost more at Gigaboks than at Kiwi. Tea, Palmolive hand soap, and dishwasher tablets cost about the same, or just a few kroner more.
Comparing prices shows that there is a lot to save, but it is still important to compare and be aware as a consumer, the economics professor believes.
The same goes for when you shop in Nordby in Sweden, not everything is cheaper than at home in Norway, according to Foros.
The grocer is still excited.
– The main impression is that Gigaboks offer good prices on the large packaging. Saving 1,300 kroner is a lot of money, but it’s hard to say if you want to save more in Sweden before comparing, he says.
Alcohol, snuff and cheap soft drinks are often important reasons for cross-border trade. Here, Foros thinks Gigaboks are losing their power.
The concept is good for people who are interested in large quantities. Here they can save money, he says.
Two completely different concepts
How to comment on kiwi spreads.
There is stiff competition in the grocery industry. Our focus is to provide the best discount stores with the most satisfied customers and employees. Gigaboks is an entirely different concept where you have to buy bigger packages to get a lower price, says Kristine Aakvaag Arvin, Kiwi’s Director of Communications to Nettavisen.
– How well do Gigaboks compete with you, and do they fight for the same customers? Are you considering changing the price of some items?
Gigaboks and Kiwi have two completely different concepts that cannot be compared. She says the kiwi will be the price pressure factor in the market and the cheapest low price chain in Norway.
Swedish prices target
Gigaboks believes that the price survey supports what Gigaboks promises to its customers.
We believe this test clearly shows that bulk shopping is beneficial, and that is exactly what we want to offer customers at Gigaboks. Then, there will likely be individual products that are not always the cheapest out there, but over time we will be the cheapest, says Terje Systad, Gigaboks leader.
Systad assures that it is always working to find profitable and rational goods to buy in large packages. If they don’t work, they promise to find alternatives with the same quality and low price.
– When it comes to comparison with Swedish trade, not all goods that we manage to be cheaper than Sweden. But when you look at the overall price level in this test, along with Gigaboks that offer a slightly different shopping experience, and many items you don’t find in regular grocery stores, hopefully it can be possible to stop some of the trade seeping into Sweden, he says.
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