Iceland Food, Grocery | Iceland is closing two of its three stores in Norway

Iceland Food, Grocery |  Iceland is closing two of its three stores in Norway

The discount chain made the announcement on its own Facebook page on Tuesday.

The branches in Pekestua, just outside Oslo and Sørlandsparken, are now closing their doors for good.

The store on St. Hunshavn in central Oslo will now be the only store left.

– This is a big loss for Norwegian consumers, and regrettable for consumers, Geir Olav Opheim, head of the Iceland Made grocery chain, tells Nettavisen.

He believes the closure weakens competition in the grocery industry.

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It has gone from six to one store

The Iceland grocery chain was founded in 2018. The British discount chain specializes in frozen food and groceries, offering a wide selection of frozen products including meals, ready meals and snacks.

As of October 2021, the discount chain had four stores in Norway. Two in Oslo, St. Hanshagen in central Oslo and Haugenstuwa in Krorudalen. In addition, they had branches in Bærum, Asker and Larvik. They then established themselves in Sørlandsparken.

From 2018 to date, they have a total of six stores.

Then, one Iceland store after another had to close its doors.

Iceland Manager:- We have lost so much money

– We have chosen to focus on the one store we have. And the sales we have through the Internet and the customers we have through wholesalers, says Opiem:

– Instead of chasing to get shop premises. Because it is impossible. We are leaving the shops till further notice, he said.

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– We lost a lot of money on this, so now we give it up, says the Icelandic boss.

Trade barriers with Brexit

Known as negative easements, the leases prevent farm owners from renting out the premises to competitors, a formidable obstacle for the Icelandic chain in Norway.

They are not provided with good business premises. As a result, the establishment of the British discount chain in Norway did not go according to plan.

Beginning in the new year, farm owners will be barred from publishing subdivisions. Adverse slave trade is a significant obstacle to establishing Iceland’s discount chain in Norway.

Brexit – Great Britain’s exit from the European Union (EU) in 2020 – has also contributed to major challenges.

Post-Brexit, they will pay 50-60%, Opheim says. NOK 000 more to import a container of goods.

Although many products are manufactured in an EU country, the British discount chain’s products pass through the UK. The United Kingdom is considered a third country, and many fees for documentation are added to the Norwegian Food Safety Authority.

A third factor is that Opiem believes it has received very poor purchasing conditions from suppliers.

Joshi Akinjide

Joshi Akinjide

"Music geek. Coffee lover. Devoted food scholar. Web buff. Passionate internet guru."

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