Sweden: Research shows discount stores have a double positive effect for Swedish consumers
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Sweden: Research shows discount stores have a double positive effect for Swedish consumers

The Swedish Competition Authority, industry organisations and several politicians have highlighted that the lack of local competition is driving up food prices. We wanted to see in figures whether increased competition actually affects prices locally – and what effect this would have on households' food costs. Matpriskollen has executed this report.


What is the most important conclusion in Low Price Report 2025?

The most important insight is that discount stores have a double positive effect on consumers. Not only do they offer lower prices themselves – they also push prices at other stores in the local area. This means that even households that do not shop at discount stores can save money, just by increasing competition.


How do you define discount stores?

Based on the report of the Swedish Competition Authority's definition of Discount Stores in its 2024 report. These are Lidl, Coop X:-tra and Willys.


How much do prices drop when low prices are established?

In the 30 investigated stores in 20 locations with 1,000 - 25,000 inhabitants, the price level is usually lower where there are competing low-price discounters:

  • Discounters not available: Lowest price 15 percent more expensive.

  • 1 discounter: Lowest price is 10 percent more expensive.


In addition, Matpriskollen has investigated what happens when there are several competing discount stores in the vicinity of an ICA MAXI Supermarket. More than half of all approximately 90 stores have been checked. When ICA MAXI is established where there is a larger population base, there is almost always at least one discount store within 5 km. But what if there are even more discount stores within 5 km?

  • One (1) discount store within 5 km of ICA MAXI: Approximately 4-5 percent more expensive than Willys.

  • If there were 4 or more discount stores within 5 km, the price difference was only 2 to 3 percent. The gap to Willys is reduced by about 40 percent. If the competition is fierce, several ICA MAXI now have the same price as Willys for comparable goods.


How is the household economy affected by a lack of access to discount stores?

In 102 Swedish municipalities, there is a complete lack of discount stores, which means that households there pay more for their food. A family with children can save up to SEK 22,000 (US$ 2,300) per year by switching to a discount store and even if they don't change stores, they can save around SEK 7,000 (US$ 750) per year thanks to the price pressure that arises when a discount is established.


What can municipalities and politicians do to promote the establishment of discount stores?

It is very much about the planning monopoly and the detailed plans that regulate where there may be grocery stores in a locality. The municipalities have the power to enable or slow down establishments. By speeding up planning and being open to new operators, you can create better competition and lower food prices locally.


This is a concrete measure that can have a major effect on households' finances. Matpriskollen also believes that the understanding of price differences between different stores and its effect on the residents' finances needs to be improved among politicians and the business community.


How does Matpriskollen collect and analyze price data for the report?

Matpriskollen uses own price database that is updated daily from hundreds of stores. In this report, it has compared regular prices of a weighted bag of 123 everyday products in both discount stores and supermarkets, both nationally and in 20 smaller towns. The prices have been collected both via the stores' websites and via physical store visits. This gives us a unique opportunity to show how price levels are affected by competition.


What role does Matpriskollen play in creating transparency and influencing the grocery market?

Matpriskollen tries to give consumers, municipalities and decision-makers a fact-based insight into the price situation both locally and nationally. With this report, we wanted to investigate and highlight the differences and effects of competition in a number of locations with and without low-price players. This insight can contribute to a more efficient grocery market. We want more people who work at the local level to understand how much money price differences actually mean for families in today's strained economic situation for many. If there are 20,000 people living in a town and they can save SEK 2,600 per person on average, then it will be over SEK 50 million (US$ 5,200,000) per year through lower food costs.



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