Ten weeks later, the price freeze is over. Now your shopping cart of Kiwi, Rema and Extra will be even more affordable.
There has long been speculation about when food prices will rise, after Kiwi jumped over the price jump that occurs on February 1 each year (when suppliers increase their in-store prices).
In familiar style, Rema and Coops Extra followed suit and plunged in prices.
Among other things, this meant that some Swedes went so far as to make trade in Norway.
Kiwi now confirms that the freeze is over — but won’t say if it was Kiwi that hit the big button first, which products increase, or how big they increase.
– We received a big raise from suppliers on February 1st, and held prices for over ten weeks despite that. It’s the most expensive thing we’ve ever done. The increase now is still less than the increases we received from suppliers, communications director Christine Arvin tells VG.
The newspaper online Mention the change first.
Do you have an overview of the rising prices – and do you have the receipts around? Consult VG journalist here.
Arvin adds that the price increases also apply to Rema and Extra. They answer more in the case.
– There are some prices that have been revised up now after the difficult Easter price war. We have held the prices for more than ten weeks. Over time, she says, we can’t sell so many items at a loss.
Kiwi also confirms that there is still a price lock on 245 items until May 1.
I will not say more
Experts predicted a gradual increase through the summer — and that all three stores would do so at the same time. And so it seems to be happening now:
Kiwi did not mention what prices went up:
– For competition reasons, we can’t say which ones or how many. Some items have increased somewhat, but there are also items that have decreased. Then there are many items that have the same low price. Kiwi manager answers, but we are and will remain the cheapest.
We won’t get the final result of how much overall food prices increased in April from Statistics Norway until May 10th.
– you have Good result in 2022 And I have received Customer growth all time Because of the action I took on February 1st. Did you have to do this now?
– Increased customer growth has not covered the costs, and we cannot sell at significant losses over time. And it’s still far from the price hikes we see in Sweden and Denmark. We didn’t raise a single penny more than necessary, and customer growth contributed to the fact that we didn’t need to raise prices so much.
Expensive toilet paper
Compare Nettavisen some commodities from before February 1 to date. One item is a liter and a half of Bris: it rose from NOK 20.90 to NOK 22.90, an increase of 9.6 per cent.
First Price toilet paper increased by 11.8 percent – from NOK 16.90 to NOK 18.90.
Kiwi replies that the price of private label production (the first price) has also gone up, among other things as a result of increased raw material prices, higher production and shipping costs, and a lower krone exchange rate.
You think the Norwegian Competition Authority needs to get involved
Food industry veteran Ivar Petersen, now a consultant at Alo Analyze, isn’t surprised by the price increase, but he is surprised that Kiwis are clear that prices have gone up with them and others.
– They should not indicate prices. So I expect the competition authority to follow up on that. I guess they shouldn’t have commented on that.
– Do you think the kiwis were the first to grow?
– It is dangerous to speculate, but with all reservations, it is not impossible that Kiwi is a price leader – that is, the first to change prices – in the low price segment. We could see a little fight over who is to blame for the price hike – it’s a fight for reputation. If the New Zealanders are getting ahead here, they may have a credibility problem.
– If they raise prices first, it is hard to reconcile with their motto of being the best in price.
He says it’s hard to see why prices are so high right now, but it might be because the media has paid a little less attention to prices lately.
– And a blow?
It may be that the media image in this way does not fit with it except a little bit.
Kiwi denies that the latter has anything to say.
Rima and Cobb also increased
Rima confirms that food has become more expensive with them, too.
– After a period of abnormally low prices in the market due to intense competition, some prices have now been adjusted to a more normal level, says Line Aarnes, director of purchasing and purchasing, who, like Kiwi, adds that they should be the cheapest.
So does Coop:
– It is not abnormal for prices to return to normal after the historically high price increases from suppliers and the period of fierce price wars. We can’t comment specifically on pricing, says Communications Director Bjorn Tackle-Fris.
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