Kiwi’s Aggressive Pricing Strategy: A Deep Dive into Norway’s Grocery Wars

Vegard Kjuus, the new CEO of Kiwi, Norway’s largest grocery chain, is defending the company’s aggressive pricing strategy, emphasizing a relentless focus on winning customers. His comments follow recent price comparisons where Kiwi hasn’t always been the cheapest, despite its claim to be the cheapest on average.

Kiwi’s ascent to the top of the Norwegian grocery market was rapid. following a famed price stunt on February 1, 2023, the NorgesGruppen-owned low-price chain saw a massive influx of customers.By the following year, Kiwi had become the country’s largest grocery chain for the first time, a historic milestone. The company reports its lead over competitor Rema 1000 further increased last year.

However, Kiwi’s consistent dominance in price comparisons has been challenged. The chain finished last in VG’s food price comparison in February 2024 and frequently appeared among the most expensive low-price options in Nettavisen’s price checks throughout 2024. Addressing thes inconsistencies, Kjuus stated, No, we are chopped so it lasts, and we cheer for price surveys. But it is vital to remember that these tests only show a snapshot and there are small margins that determine. The real art is to push prices all the time, not just in selected periods, emphasizing a continuous, rather than sporadic, approach to price competitiveness.

Kjuus further clarified: Of course, we want to win price tests, but we are even more concerned with winning the customer by pushing hard on price, highlighting the broader customer acquisition strategy. He acknowledged the difference between consistently low prices and winning specific price tests, explaining, There are two different worlds. We are best at tests that come a little more surprisingly, compared to tests where prices are dumped at a certain time. For example, just before Christmas, when everyone expects price surveys. Then you have to cut the price faster than the others. We were too slow to cut prices, but we have pushed hard and evenly throughout the year.

Kjuus, who assumed the CEO role on January 1, 2025, succeeding Jan Paul Bjørkøy after he reached NorgesGruppen’s mandatory retirement age of 70, brings extensive experience. Having been with NorgesGruppen as 1998 and leading Meny since 2011, Kjuus (52) is committed to building on Kiwi’s existing culture and fostering growth. He explicitly rejects the notion that grocery stores in close proximity help regulate prices.

Kjuus’s emphasis on consistently low prices reflects a long-term strategy aimed at securing customer loyalty and maintaining Kiwi’s position. the company’s reliance on NIQ’s average price data, while unofficial, underscores its commitment to maintaining a competitive edge.

Kiwi’s New CEO Aims for Even Cheaper Prices Amidst Store Saturation Debate

Kjuus faces the challenge of maintaining Kiwi’s position while navigating a fiercely competitive market. In a recent interview,he acknowledged the demanding nature of the industry,stating,“it is indeed indeed a very demanding industry to go straight into. I know Kiwi from the outside, but must say I have been really impressed with how well-run and well the company is. It is indeed characterized by an entrepreneurial and winning culture that has been here for many years.” He highlighted the differences between his previous role at Meny and his new position at Kiwi, emphasizing the contrasting business models: “There are two different concepts. Meny has served fresh produce departments, unlike Kiwi. Here there are prices on the table and an intense price match every single day, as here we should be the cheapest, while in Meny we should be the best at selection. So it’s a little different DNA.”

Maintaining Market Leadership and Fostering Growth

Kjuus’s primary objective is to make Kiwi “even cheaper and even more attractive,” he declared. Beyond price competitiveness, he stressed the importance of cultural growth: “And not least build culture, so it is robust ahead. Kiwi has built stone by stone and kept steady courses. My task is to keep that course steady.” He acknowledged the pressure of maintaining Kiwi’s leading position, stating, “I say before me they have laid a good foundation. And then I think it is indeed critically important that we continue to think as challengers and that we are offensive in our heads.”

While acknowledging the importance of growth, Kjuus clarified the company’s strategic focus: “We set hairy goals, but the most critically critically important thing for us is that we have a culture that is hungry and that develops every single year. And then it is clear that it is important to grow,and it is important to grow more than the others. but we have not set any specific goals in shares.” This underscores a commitment to sustainable growth and internal advancement.

Store Saturation Debate Intensifies

A report highlighted the opening of a new Kiwi store at Carl Berner in Oslo, the seventh Kiwi store, and thirteenth including other Norgesgruppen chains, within a 750-meter radius. This raises questions about market saturation.
Headline: Navigating Norway’s grocery Wars: Expert Insights on Kiwi’s Aggressive Pricing Strategy and the Implications for Market Leadership

Opening Statement: Kiwi’s recent strategic pivot to aggressive pricing in Norway has not only shaken the grocery industry but also sparked debates on market saturation. Can Kiwi’s relentless pursuit of price competitiveness overtake Rema 1000 and secure its long-term leadership?

Senior Editor: Welcome to “Global Market Insights.” Today, we’re diving deep into the fierce grocery wars in Norway. Kiwi, under the leadership of new CEO Vegard Kjuus, has been aggressively pursuing a low-price strategy. Could you elaborate on the significance of Kiwi’s strategic approach and its implications for the Norwegian grocery market?

Expert: Kiwi’s approach is rooted in a classic retail ideology: price leadership. By positioning itself as the “cheapest” chain, Kiwi taps into customer price sensitivity, driving foot traffic and expanding market share rapidly. This strategy not only challenges competitors like rema 1000 but alters competitive dynamics. The potential for sustained low prices can establish customer loyalty, a critical asset in retail. however,this relentless focus on pricing requires constantly analyzing competitor pricing,operational efficiencies,and consumer trends to maintain its edge.

senior Editor: Kiwi’s rapid rise to prominence was notably marked by a headline-grabbing price stunt in 2023.How do such tactics align with Kiwi’s broader strategy, and what are the risks involved?

Expert: A dramatic price stunt can serve as a double-edged sword. It quickly signals market entry or change in strategic direction,drawing immediate consumer attention and gaining media traction. For Kiwi, the February 2023 stunt exemplified this tactic by attracting a massive influx of customers almost overnight, propelling them to the forefront of the Norwegian grocery market. However, such stunts carry risks, including potential price wars with competitors and eroding profit margins. It requires a delicate balance to ensure that initial customer influx transitions into long-term loyalty and sustainable competitiveness.

Senior Editor: Despite its aggressive pricing strategy, Kiwi has faced challenges in consistently topping price comparisons. How does this affect its brand perception and strategy execution?

Expert: Consistency in pricing is crucial for brand perception,especially for companies championing low prices.Kiwi’s occasional lapses in winning price comparisons reveal the complexities behind maintaining a uniformly low-price strategy. Thes inconsistencies could challenge customer trust over time. To mitigate this, Kiwi emphasizes continuous price competitiveness rather than sporadic successes. This strategy focuses on long-term customer acquisition by minimizing price discrepancies, thus sustaining its position as a trustworthy low-price leader.

Senior Editor: kiwi’s expansion strategy has led to debates over market saturation, especially with multiple stores opening within close proximities. How does Kiwi balance growth with market saturation risks?

Expert: Balancing growth with saturation is a perennial challenge for any retail chain. For Kiwi, opening multiple stores within close proximities could maximize convenience for customers and capture regional market dominance. However, it risks cannibalizing sales among its stores and increasing operational costs. Strategically,Kiwi must assess regional demand,competitor activity,and logistics capabilities to ensure new stores reinforce rather than dilute market presence. Sustainable growth hinges on continual market analysis and adaptive operational strategies.

Senior Editor: What long-term impacts can Kiwi’s price leadership strategy have on the broader Norwegian grocery market, especially concerning smaller retailers?

Expert: Kiwi’s price leadership significantly influences the broader market, often setting a benchmark for pricing strategies. Smaller retailers might struggle to compete with kiwi’s scale and pricing efficiency, perhaps leading to market consolidation. This could result in fewer choices for consumers if smaller players can’t sustain competitive prices. Additionally, as Kiwi pushes downward pricing, it could push the entire market to revise its cost structures, influencing supplier terms and consumer expectations. The long-term impact is a market highly tailored to cost-efficiency and price competitiveness,transforming the retail landscape in Norway.

Senior Editor: As Kiwi continues to evolve under Kjuus’s leadership, how might its strategy influence global retail trends?

Expert: Kiwi’s price-focused strategy could inspire similar tactics globally, especially in markets with high consumer price sensitivity. Retailers worldwide might adopt more aggressive pricing models to counteract market disruption from e-commerce platforms and innovative business models.Moreover, Kiwi’s approach highlights the importance of data-driven decision-making in retail, such as leveraging price comparison data and consumer insights to refine strategies. Kiwi’s story may thus serve as a blueprint for traditional retailers navigating the increasingly competitive global market.

Conclusion: Kiwi’s aggressive pricing strategy underlines the intricate dynamics of modern retail, balancing customer acquisition with sustainable growth. As the grocery wars escalate in Norway and beyond, Kiwi’s approach may redefine competitive strategies on a global scale. What are your thoughts on Kiwi’s strategy, and do you think it sets a precedent for future retail trends? Share your insights in the comments below or join the conversation on social media.