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Kiwi cuts prices further on more than 500 items, and is joined by Rema 1000 and Coop.
In October, the low-cost chain Kiwi launched its biggest price reduction campaign to date. They cut the prices of more than 500 items by an average of 21 percent from October 19 to December 1. On Monday of this week they made another cut, which continues during the campaign.
– The 500 items have been further reduced in price. The number of products that are cut varies from one article to another. There’s a crown here and a crown there, which together makes the shopping cart cheaper, says Kristine Aakvaag Arvin, Kiwi’s communications manager.
However, Kiwi will not come out with the full list of price cuts. Therefore, the online newspaper took a random sample of 15 randomly selected items, confirming that these also have a somewhat reduced price.
The price cut comes just days after Kiwi owner Norgesgruppen canceled the industry rule for price collection at competing stores via price finders. This means that Rema 1000 and Coop cannot send price finders into Norgesgruppen stores to check all prices in the same way as before.
BACK: Kristine Aakvaag Arvin, Kiwi’s chief communications officer, says they are doing this to give something back to customers after the chain’s increased revenue growth during the crown crisis.
Photo: Kiwi
– What is the reason why you cut prices more?
– Kiwi is the market’s price squeezer. Overall, we’ve had good growth through the crown, and this has given us an opportunity to push prices further. Our price cuts have been very well received by customers, and we promise to keep striving to be the cheapest on all items every day, she says.
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The October consumer price index also shows that food prices in Norway as a whole have fallen by 0.8 percent from September to October. At the same time, we also see that prices have risen 4.5% in the last 12 months, according to statistics from Statistics Norway.
In the following table you can see a selection of the articles that have a lower price:
Below you can see the prices that Nettavisen checked:
Must contribute to competition
Both Rema 1000 and Extra, Coop’s low-price chain, said they would follow the price cut, when it was announced in October.
– Of course, we follow the Kiwi price cuts. We already removed some of these products next week, said Coop communications manager Harald Kristiansen.
– We cut prices every day, every week, and we also cut the prices of all similar products by the same amount or more, replied Calle Hägg, public relations and communications manager for Rema 1000.
PRICE CUTS: These items are among the items where Kiwi is now reducing prices.
Photo: Halvor Ripegutu (Mediehuset Nettavisen)
We have asked Kiwi competitors again what they are doing now that Kiwi has reduced prices even further.
– What our competitors do is not that important, except, of course, we will match and exceed them in price. In the selection, we already crushed them with 1,500 articles, says Bjørn Takle Friis, communications director at Coop.
Friis notes that Extra consistently shows that they are among the cheapest discount chains in the country. This will also be the case in the future, with or without “price hunters”, and in particular the chain Extra and Obs will have good Christmas deals.
– We will contribute to fierce competition and with prices that benefit our owners’ customers, he says.
Also read: In this price test, Coop is 18 percent more expensive: – There is a lot of money to save
Calle Hägg, public relations and communications manager at Rema 1000, also responds to what they think about the competitor’s price cut this week.
– It is not unusual to cut hundreds of prices in a week, so this is not a big deal. Of course, we cut our prices on all similar products by the same amount or more, and we still promise our customers as low prices as possible and safe Christmas shopping, he says.
Believe it will have consequences
The Kiwi price cut in October is their fourth major price cut campaign this year. When competitors have to do the same to keep customers, it can have consequences. Bjørn Takle Friis, Coop Norge’s communications director, told Nettavisen earlier this fall.
– It goes beyond our opportunities to establish new stores, he said in October.
COMPETITIVE: Bjørn Takle Friis, communications director for Coop Norge, says they must follow competitive price cuts to be competitive.
Photo: Nina Lorvik (Mediehuset Nettavisen)
When Coop follows the big Kiwi price cuts, this is in addition to their own promotions and price cuts. In early October, Coop started a price war on the cheapest products, when it slashed the prices of 160 products in the cheap Xtra series.
– We must be competitive in price, otherwise we would not have had the right to life. We win by following our competitors, but we would like to have money to invest more, Friis said.
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Øystein Foros, a professor at NHH and a grocery expert, said, however, that he doubts that all Norwegian consumers realize exactly which Kiwi products have cut prices.
– The chains, on the other hand, do it, because they do not want Kiwi to be 20 percent cheaper than those of the selected articles. But how much it hurts for Coop and Rema to follow him will likely vary, he told Nettavisen in October.
“It can hurt less than what they express,” Foros said.
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