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Kiwi is now implementing its fourth major price cut so far this year. – Of course we continue, extra answers.
The biggest Kiwi price cut begins on Monday.
– We cut the prices of more than 500 items by an average of 21 percent, Kiwi Aakvaag Arvin, Kiwi communications manager, tells Nettavisen.
The price cut lasts from October 19 to December 1.
SATISFIED: Kristine Aakvaag Arvin, Kiwi Communications Manager, is pleased that they are once again reducing prices.
Photo: Kiwi
When the crown pandemic broke out in Norway in March, many were laid off, some lost their jobs, and the economy deteriorated for many. Kiwi says this is one of the reasons they cut the prices of more than 200 items earlier this year.
The price cut ended on June 15, but on the same day it ended, they launched another big price campaign until August 1. The third price cut was launched on August 24 and ended on October 3.
The prices of the products of the first price cut have already been set.
– Prices were adjusted on October 3, as announced. They were re-adjusted to the exact same price as before the price cut. The only exception is Synnøve yellow cheese. It cost 89 kr before the price cut and we decided to keep the price at 69 kr, says Arvin.
Further down in the case, you will find a list of products for which Kiwi is reducing prices.
– Benefit customers
Now Kiwi customers can expect cheaper products again.
– We are the price squeezer in the market, and when we are in an extraordinary situation and we have had great growth, it is right that growth benefits customers, says Arvin.
She says they want to show that they appreciate that people choose to shop at the convenience store and that they have chosen to lower the prices of the products that most people buy.
– There are price cuts on large products like salmon, chicken, flour, milk, Coca-Cola and washing powder, to name a few, he says.
– We have tried to choose articles relevant to the period in which we are and a wide selection, he says.
Wheat flour is one of the products with the greatest price reductions. Here the price is cut in half. If you buy 4x2KG of wheat flour from Mølleren, you will get a discount of 49 percent. The previous price was 75.60 and the new price was 38.90.
– It is an item that everyone buys. We are entering the baking season and flour is an important product for many customers, says Arvin.
HALF: The price of wheat flour is cut in half.
Photo: Halvor Ripegutu (Mediehuset Nettavisen)
Also read: Now Kiwi is bigger than Rema 1000, it is the largest supermarket chain in Norway
In early October, Coop launched a significant price cut on its own brand products, the economy Xtra series. Kiwi and Rema responded with their own price cuts. Arvin denies that the big new Kiwi price cuts they are now announcing are based on Coop’s price cuts.
– We control prices based on our own strategy, he says.
In the future, it may also be cheaper in other stores:
– Of course, we follow Kiwi price cuts, Coop communications manager Harald Kristiansen tells Nettavisen. Coop makes weekly price cuts, explains:
– We already cut some of these products next week, he says, and still with a sparkle in his eyes:
– We also think it’s great that Kiwi wants to celebrate Extra opening the 500th store anytime, so we got together and started the celebration now.
The online newspaper has also contacted Rema 1000, and we will update the case as soon as possible.
Below you can see which Kiwi items is lowering prices:
Take position in the market
When Kiwi implemented its third price cut, Nettavisen spoke with Tor Wallin Andreassen, a professor at the Norwegian School of Management and an expert in marketing and entrepreneurship.
He thought the Kiwi price cuts could be very positive for the chain.
– It shows that they assume social responsibility in the midst of a pandemic, at a time when many people find themselves without income and with uncertainty about their income. Therefore, in isolation, it is a good measure, he said.
Also read: Fury over kiwi news: threatens to boycott purchases
At the same time, he said that it helps build people’s brand attitude. Kiwi proves that he never gives up on price and heads towards Rema 1000, and that he is a socially responsible gamer.
In short, this helps create a preference for kiwi, in an otherwise completely flat and gray product market. This can help increase the use of Kiwi as a supplier, Andreassen explained.
He also said that this will give Kiwi a marginal increase in sales and volume, and slightly better buying conditions or more power to buy.
– They can get more power to make suppliers push prices, he said.
Feel free to give your opinion in the survey before reading further, the article continues below.
Complaints about purchase conditions
This is precisely what has been discussed several times. Kiwi is owned by Norgesgruppen, which is the largest grocery producer in the country. The group also owns the Meny, Spar and Joker chains, and a total market share of 44 percent.
A week and a half ago, the Norwegian Competition Authority issued a new report, which showed that Norgesgruppen has better purchasing conditions than Coop and Rema from various suppliers. The differences they found in 2017 persisted in 2018 and 2019.
– The differences are significant for some providers. Therefore, the differences calculated for 2017, presented in the 2019 report, were not a unique case, writes the Norwegian Competition Authority in the report.
Read more here: New revelations about kiwi and the menu: You have a huge advantage over the competition
Kolonial.no manager Karl Munthe-Kaas believes that suppliers are part of the problem. He recently told Nettavisen that he believes it is part of an agreed deal that Norgesgruppen will receive lower prices from large suppliers in exchange for denying shelf space to smaller competitors.
– They can more credibly threaten to take, for example, Ariel detergent and make it a new brand in Norway. Therefore, Lilleborg (which is owned by Orkla, journal. Note) has to give Norgesgruppen a reasonable price, Munthe-Kaas said.
Also read: Careers above differential treatment: Freia and Orkla stand out as two of the worst
He is supported by Rolf Rune Forsberg, owner of the Hval chocolate factory. He says they have experienced being squeezed in favor of a larger chocolate supplier: Nidar.
– Yes, they used us in this game. In the same way that Nidar has been threatened to provide better conditions so that smaller suppliers are not accepted. We have entered Norgesgruppen stores, only to be dumped again when Nidar has given them better terms, he said.
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