Norway around
(Rana Blad)
[Nettavisen] In the last three months, there have been small differences between the chains, which has become clear from several of the price tests on Nettavisen.
The differences are smaller in the third quarter than they were in the second quarter, according to recent figures from Enhver.no, which has collected prices. A total of 2736 prices have been collected from Kiwi, Rema, Extra, Obs, Meny and Spar. The prices are divided into 226 different items, from week 27 to week 39.
Kiwi is the prize winner, and only 0.20 percent behind is Rema. Then comes Extra – only 0.64 percent more expensive than Kiwi. In the second quarter, on the other hand, only 0.06 per cent separated Kiwi and Rema, while the distance to Extra was greater – 1.26 per cent.
– It is probably nice to say that it does not matter where you shop, and that customers can look at the selection, service and the like. But it is sad for Norwegian consumers that there is no competition, says Rune Nikolaisen, who runs Gjerrigknark.com.
LITTLE COMPETITION: Rune Nikolaisen, who runs Gjerrigknark.com, believes there is too little price competition among the low-price chains. Photo: Bjørn Kenneth Muggerud
He misses a low-price competitor who is helping to push up prices for Kiwi, Rema and Extra, because as it is now, it is as if the chains are collaborating on price.
– They follow each other so closely that it is almost the same effect as it would have been if they actually had a price collaboration, he says.
Benefit program decides
With such small differences, it is clear that things other than price in the store play the biggest role in where one should shop. One is, of course, location, but another thing – which more clearly separates the chains – is their benefit programs.
Kiwi has Trump and Kiwi Pluss, Rema has Æ, while Extra has Coop’s benefits program.
– They have to profile themselves on something else when they can not profile themselves on price, says Nikolaisen.
He recommends being a customer member of everyone, so that you get all the discounts on things you shop a lot of as usual. Although it’s probably not something the chains want you to do.
– They try a lot to bind customers. They come with one or more good offers, and hope you buy the rest of the items you need from them as well, says Nikolaisen, and adds:
– People who are actually price-conscious take the benefits of all the chains.
He believes that the grocery chains are clearly thinking about what they can do to target a specific target group, so that they will choose to shop with them. They do this by using the benefit programs to their advantage – for example, it is several that offer diaper bonuses, something Nettavisen has also mentioned before.
– This separates us and the competitors
Harald Kristiansen, communications manager at Coop Norge, says that what we see from the quarterly figures is as it should be – with small differences between the low-price chains.
– It is positive that we are so equal in price. Price should not be a reason to go to our competitors, but we see that location is a very decisive factor, he says.
FIGHTING AGAINST THE COMPETITORS: Harald Kristiansen, head of communications at Coop Norge, says that Extra will be at least as cheap as Rema and Kiwi. Photo: Halvor Ripegutu (Mediehuset Nettavisen)
At the same time, he emphasizes the importance of the right location, large and good selection, as well as good store operations. But there is no doubt that Coop’s membership program is also positive for the chain.
– What sets us apart from the competition is that we are owned by our customers, they give good membership bargains and membership benefits, and we share the profits, says Kristiansen.
– It is important to be attractive in this way, because customers save a lot of money every year by shopping with us if they are members. This is where the big savings lie, he adds.
Will be cheapest
Kristine Aakvaag Arvin, communications manager at Kiwi, tells Nettavisen that there is fierce competition between the low-price chains, but it is Kiwi that is pushing up prices.
– Price surveys give an indication of the level, but are not conclusive. We know that Kiwi is the cheapest, and that the total price range is greater than what these surveys show, she says, and adds:
– In any case, we are happy that there is tough competition, especially between Kiwi and Rema. This benefits customers.
Arvin says that Kiwi’s goal is to have Norway’s best benefits program, and she points out, among other things, that Kiwi has the highest fruit and vegetable bonus among the chains and is the only chain with its own fishing bonus.
– We will be cheap on all goods, and we are also the chain that has taken the initiative to push prices down during the corona period. We promise customers that we will continue to fight. We never give up on price, she says.
PRICE CUTTER: Kristine Aakvaag Arvin, communications manager at Kiwi, says they will continue to push prices. Photo: Kiwi
Less separates low cost and supermarkets
In the third quarter, we also see that the distance between the award-winning Kiwi and the most expensive chain – Meny – is smaller than in the previous quarter. In the second quarter, Meny was 14.82 percent more expensive, while in the last quarter they are only 10.36 percent behind Kiwi.
In comparison, Spar is 8.84 per cent and Obs 4.28 per cent behind Kiwi in the third quarter. The price distance from Kiwi and to both of these chains was greater in the second quarter.
Feel free to say your opinion in the poll before you read on, the article continues below.
Shopping cart of the week
It’s not just the quarterly report we’ve seen this week. This week, Enhver.no has also collected prices for a number of foods from six different grocery chains.
Like the quarterly report, this week’s shopping cart also shows that there are very small differences between the low-price chains. Only one penny separates prize winner Kiwi and Rema in second place. Extra is in third place – only 3 kroner and 14 øre behind Kiwi.
It is Spar that comes out worst in this week’s price comparison, and is 77 kroner behind Kiwi. Menu is in second last place – 13 kroner cheaper than Spar. Note, for comparison, is 22 kroner behind Kiwi.
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