Food prices also rose significantly this summer. But according to Oda, E24’s shopping cart is not representative of their overall price development.
MORE EXPENSIVE: E24’s shopping cart consists of over 130 year-round everyday products. It has become 11 percent more expensive in the last six months. Photo: OdaPublished: Published:
Less than 20 minutes ago
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The price window on 1 July came and went without the grocery chains touching prices anywhere.
Throughout the month, however, the trolley in the grocery store has gradually become significantly more expensive. See examples at the bottom of the case.
E24 follows this by having a computer tool daily note the prices of 134 identical everyday products at Oda and the Meny online store.
Oda’s prices usually reflect the prices of the three largest discount chains – Kiwi, Rema 1000 and Extra. When VG’s food exchange trades for several thousand kroner with all four players, there is often only a few kroner that separates the final sum.
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On 30 June, the shopping cart at Oda cost NOK 5,339. This remained virtually unchanged in the first scant week into July.
July is typically the month of the year when food prices rise the most. This is because 1 July and 1 February are the two dates when the chains’ purchase prices from suppliers are adjusted. This usually means increased prices for the consumer. In July, the agricultural settlement kicks in additionally.
Statistics from Statistics Norway show that food prices have risen by an average of 2.1 per cent in July over the past 20 years. The shopping cart at Oda increased by far more than this this year.
On 31 July, the final sum had increased to 5,606. This corresponds to an increase of 5.0 per cent.
E24 has also taken a second look at goods we price-checked at Kiwi, Extra and Rema no later than 1 July. At Kiwi, a shopping basket with 23 items has increased in price by 3.3 per cent.
This is a smaller selection, and also not identical goods as at Oda, so the figures are not comparable. But the Kiwi development underpins the fact that most grocery customers have experienced further price increases throughout the summer.
Director of Communications Kristine Aakvaag Arvin at Kiwi. Photo: Kiwi
– Kiwi has had to adjust the prices in July, after we received new price increases from our suppliers on 1 July, says communications director Kristine Aakvaag Arvin.
She says that they have received strong price increases from the chain’s suppliers in the past year, and that Kiwi also sees a strong currency effect on imported goods.
– The price increases we have received this year are higher than what we have adjusted the prices to the customers.
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– Very little price development
Commercial director Anders Hansen at Oda writes in an e-mail that they do not recognize that Oda’s prices should have increased by 5 per cent during July.
– Oda has a range of almost 8,000 articles, and the prices of 130 articles are therefore not representative of our price development. Our price increase in July, on the entire range, weighted against what customers buy, was very small and much smaller than normal in July. A good number of products also went down in price, he says.
DO AS SSB: Oda measures its own price development with a model that takes into account what customers buy the most. It is the same principle that Statistics Norway uses when they create the consumer price index. The July price increase was unusually low, according to Oda. Photo: Hans M. Jordheim / E24
– The shopping cart has now become 11 per cent more expensive in the last six months. Does this reflect their cost trends?
– No, cost trends have been higher over the past year, but we shield our customers from the worst price jumps.
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Supports new model
Whether July will continue to be the month of the year where food prices increase the most is uncertain.
Rema 1000 went out before the summer and announced that they will scrap the model where they only negotiate with suppliers twice a year. The chain believes that negotiating with suppliers all year round will give customers more predictability.
Oda, which has a purchasing partnership with Rema, supports this.
– We believe ongoing negotiations will be the only right thing to do going forward. Over time, this will give customers lower prices, which are more in line with the actual cost picture in the market and society, as well as removing the suppliers’ opportunity to build up so-called backlogs, which they have to make up in the form of disproportionately large price increases, writes Hansen.
2023-08-05 14:06:18
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