Extra Takes the Crown: Norway‘s Grocery Price war Heats Up as Salmon Prices plummet
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Norway’s grocery landscape is undergoing a significant shift, according to a recent price test conducted by Nettavisen in August. While overall grocery costs have seen a modest average increase of 1.5 percent, the battle for the lowest prices is intensifying, with Extra emerging as the clear winner, substantially outpacing Kiwi and leaving Rema 1000 at the bottom of the rankings.
Surprising Shifts in Grocery Costs
The Nettavisen price test, encompassing 112 commonly purchased goods and comparing prices to those from August of the previous year, revealed some striking trends. While many items have experienced substantial price hikes – ranging from 20 to 40 percent – strategic promotions and a surprising drop in salmon prices have kept the overall increase relatively contained.
“It is absolutely sick how prices have increased,” remarked one shopper, Helene Backer, at a Kiwi in Oslo, especially noting the jump in coffee costs. Another shopper,Amy Stinchcombe,observed that bread prices in Norway are considerably higher than in the United kingdom.
Items Seeing the Biggest Price Increases
several staples have seen significant price increases over the past year. Notable examples include:
- zalo Detergent: 32.90 NOK (+6.10 NOK)
- Nora Strawberry Jam: 29.90 NOK (+6.50 NOK)
- Small Good per Kilo: 169.00 NOK (+10 NOK)
- Red Bell Peppers per Kilo: 74.90 NOK (+10 NOK)
- Coca cola Zero, 4 x 1.5 liters: 74.90 NOK (+10 NOK)
- Norvegi
The Nettavisen price test revealed a clear winner in Extra,with a total shopping cart cost of 4805.79 NOK (+31.95 NOK). Kiwi followed closely behind at 4811.90 NOK (+80.56 NOK), while Rema 1000 landed in last place with a total of 4825.73 NOK (+105.75 NOK).
The Impact of promotions and Price Hunting
While the overall price increase was modest, the chains’ promotional campaigns played a significant role. A total of 12 goods were included in various offer campaigns, including Grandiosa pizza and Stabburet mackerel in tomato, both of which were significantly cheaper than last August.
The practice of “price hunting,” where chains coordinate pricing strategies, has come under scrutiny following billion-kroner fines issued to NorgesGruppen, Rema-Reitan, and Coop by the Competition Authority for illegal price cooperation. Despite these fines, 95 out of 112 goods in the shopping cart were priced identically across the three chains, with only minor price differences for the remaining 17 items. According to grocery expert Ivar Pettersen, this suggests the Competition Authority’s efforts to curb price hunting have had limited impact.
Looking Ahead: Potential for Price Declines
Despite the recent price increases, experts remain optimistic about the future. Pettersen believes a decline in prices is “not inconceivable” in August and September, noting that the food prize in Norway is “on the way down.” He anticipates that Statistics norway’s figures for July will show a price increase of at least four percent annually.
Extra chief Håvard Jensen expressed pride in his chain’s performance, stating, “We are proud that Extra once again is Norway’s cheapest grocery chain in Nettavisen’s big price survey.” While Kiwi acknowledges Extra’s victory, they suggest the results could have been different if their larger bag of Evergood coffee had been included in the test. Rema 1000’s purchasing director, Line Aarnes, affirmed the chain’s commitment to keeping prices down for customers, despite their current position as the most expensive of the three.
