Food prices, grocery | Now food will be cheaper: – A gift package for us, the consumers

Food prices, grocery |  Now food will be cheaper: – A gift package for us, the consumers

– A gift package for us consumers, says grocery expert Odd Geschulte.

Grocery chains are starting the year with a charm offensive. On Extra's part, this represents an average price reduction of 7.5 percent for 150 so-called everyday goods, from oil and pasta to vegetables and jam.

– The huge price reduction includes everyday goods from our brands such as Änglamark and Xtra, as well as from suppliers such as Toro, Nora, Faris, Lano, Santa Maria, Findus, Maarud and many others. In addition to price cuts, there are our regular offers and promotions. This will make January trading cheaper for all our clients, says chain manager Håvard Jensen in a press release.

Rima 1000 It has already promised to freeze the prices of more than 1,000 products on New Year's Day. The campaign runs through Easter, and applies to goods in a number of categories.

– Gift package

Kiwi communications director Christine Arvin says the chain started the year by raising prices on a number of items. Prices for some goods have been reduced by more than 20 percent in the low-priced Norgesgruppen chain, in addition to other measures such as the so-called price lock concept.

– In addition to paying the prices ourselves, we daily check prices at the other two low-priced chains. When they have a campaign, we reduce prices by the same amount or more on similar goods in the same period, she told NTB.

Grocery expert Odd Geschulte describes the price campaigns as a “gift package” and believes it is a sign that Industry Minister Jan Christian Pfister (AFP) can relax and does not need to intervene in the grocery trade.

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The market is managing itself and the minister does not need to intervene. It all started last year, when Kiwi opposed the expected price increase on February 1. Then the other two had to follow suit. Margins are down in the grocery industry, and there is tremendous pressure on prices, he told NTB.

It will not lead to significant changes in consumption

Gesholt points out that Rima has frozen the prices of up to 1,000 products.

– In all chains there are between 5 and 6,000 items on the shelves. VG's food exchange might control 100 products, and then be free to raise prices on the rest. But with Rima's prices being frozen, a good number of items have started to appear.

At the same time, it is not necessarily believed that this will lead to major changes in consumption patterns, as food exchanges tend to show small differences between chains.

– It will be interesting to see if consumers realize that the price is cheaper in one place than in others. After all, they're on pretty much every street corner. Everyone is cutting prices, it's a bit unclear, so it's important for customers to follow the lesson.

Besides price, choice plays a certain role, as all chains have their own brands on which they can raise prices. Gesholt believes New Zealanders in particular were skilled at this. Then location comes into the picture.

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Mega and Mini in the press

– In eastern Norway, Rima was on a bit of a retreat front, and they didn't have enough good positions. Both Extra and Kiwi have done well, and Coop has renamed old co-ops and other stores to Extra.

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He points out that there are between 500 and 700 stores of each of the three low-priced chains across the country. When the number is very high, the location is central.

Meanwhile, supermarket chains Coop Mega and Meny are under enormous pressure, as a grocery expert calls it.

– They have offers with the 10 and 20 kr market almost every month, and Mini 500 offers cheap items as well. But 70 percent are shopping at lower prices now.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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