Norway: Kiwi starts price war again
Updated: Aug 27
Discount Retail Chain Kiwi (owned by NorgesGruppen ASA), operating in Norway with ca. 665 stores and Denmark with ca. 110 stores, made the third major price cut this year in Norway. 'They have no other choice', says discount retail market leader Coop Extra, who like discount retail chain Rema1000 (Norways second largest discounter with ca. 700 and also operating in Denmark with ca. 300 stores) answers with a corresponding price cut.
'Overall, we have had great growth during the corona pandemic, which is partly due to the halt in cross-border trade. As we grow, it gives us the opportunity to push even more on the price. It is right and reasonable to share with our shoppers. There is still a demanding and extraordinary situation in Norway due to the corona pandemic, which affects all. Many families notice this very much in their budgets', says Kristine Aakvaag Arvin, communications manager at Kiwi
That is why Kiwi launched a new and large price campaign for the third time since April. The last time Kiwi cut prices, it was by 20% on around 200 items, both June 15 and April 17. The new price cut lasts until October 3, applies to 131 items with price cuts of between 10% and 35%, especially in the high volume grocery product categories that are important to shoppers, as they are bought often.
The goal of the campaign is: - to win shoppers. Norwegian shoppers should have confidence that Kiwi is the cheapest and continues to push prices; - to keep shoppers continue to shop more locally even when the lock-down has been reduced and Norway is opening up for cross-border trade again.
Kiwi points out that it will not be able to match the Swedish grocery prices for its tax-heavy grocery products, but they will rather continue to focus on good service, quality and facilitate healthy and good choices, to create a competitive advantage in the future. The news makes the competitors respond, and Coop Extra (owned by Coop Norge) and Discounter REMA1000 (owned by Norwegian Reitangruppen) says that they follow suit by cutting prices equally for the same grocery products. Kiwi knows that Norwegian shoppers are concerned about two things; price and large selection. As Coop Extra is the lowest price chain with the greatest growth, with over 1,500 more SKUs than Kiwi, and even though they have far better conditions on their procurement volume as part of the market leader retailer Coop Norge.
Market positioning The step Kiwi takes helps to build their shopper's brand attitudes, it shows that Kiwi never gives up on price, chasing REMA1000. At the same time, it shows that they are a socially responsible player. In sum, this helps to create a shopper's preference for Kiwi.