[ad_1]
The food group Axfood, owner of Willys and Hemköp, is realizing the trend of low prices by opening its Snabbgross wholesale chain for individuals.
In the simplified, warehouse-like shop in Enebyberg, north of Stockholm, individuals will be able to enjoy the same products, packaging and prices that restaurants receive. The problem is that you have to be a member and pay an annual fee to be able to trade.
– We have analyzed a lot internationally how they work, for example, Costco and several others, which drives a lot for you to become a member and create a loyalty where we can then give back with better prices, says Eva Pettersson, CEO of Snabbgross.
Eva Pettersson, CEO of Snabbgross.
Photo: Lisa Mattisson
Costco is one of the largest department store chains in the world, where customers have to pay an annual fee in order to enter and shop at the store. Previously, there were rumors that the chain was heading to Sweden.
Axfood is now aimed at large families interested in cooking or shopping before big events.
Between the shelves you can see tubs of salt, buckets of different sauces and cheeses as big as sofa cushions. It is clear that far from everything it will be relevant to ordinary people.
– It is the packaging of the restaurants that is applied here. So it is the case that perhaps everything cannot be used as a private person, says Eva Pettersson, noting that she does not expect people to do all their shopping in her stores.
The idea is that it is a complement to the grocery store, where the customer comes a handful of times a year and recharges.
– If you have a very large family, you may come more often, but it is also a question of how to store at home. You can put canned food in a basement, but you probably don’t have unlimited refrigerators and freezers in the same way that a restaurant does, says Eva Pettersson.
The store focuses on selling large volumes of products.
Photo: Lisa Mattisson
According to her, it should be possible to calculate the membership fee fairly quickly.
– We will focus on having good offers. If you are a heavy consumer or have a large family, you can tell about it at home after the first visit.
Wouldn’t there have been more customers here if everyone could buy?
– That could be the case, but at the same time we also want to create this exclusivity, says Eva Pettersson.
Monica Bruvik is a Senior Retail Analyst at analytics company HUI Research. She thinks a comparison to the American Costco model is somewhat lame.
– I see it as something completely different. Especially since this is basically a restaurant wholesaler and it’s not Costco that way. They have a different range with all sorts of rare products that they take in large batches, says Monica Bruvik.
Monica Bruvik, Retail Analyst at HUI Research.
Photo: Press photo
According to her there definitely a low price trend in commerce that has been growing for some time, but you wonder if customers are really that interested in the big package concept itself.
– As I interpret this, it should be aimed at individuals who like to cook and like larger packages, but also those who like to buy. We have seen during certain phases of the pandemic that a large package of toilet paper and the like has been stored, but nothing has held up, says Bruvik.
When Swedes go shopping for large packages, it is mainly before bigger events like the student, the wedding or the parties, he explains.
– People don’t do much of that now. This limits the possibility of large-scale sales during the pandemic, says Monica Bruvik.
Eva Pettersson can only agree that it is far from optimal to open amid what appears to be a second wave of crown in Sweden.
– The timing is really completely wrong, but we believe in this in the long term and it was a successful opening with great interest, he says.
Axfood’s projects have been inspired by international department store chains such as Costco.
Photo: Lisa Mattisson
In HUI surveys So far, there have been no trends for large volumes of food to be in particular demand in the market. Rather, prices and quality are what is demanded.
– We see a massive trend of low prices and it is easy to forget that the low price sector is growing faster, is more profitable and has more sales than all Swedish e-commerce, says Monica Bruvik and continues:
– I don’t think this type of large-pack sale is entirely correct, but I am honored that the desire for low prices is great, so it can certainly work if presented in the right way.
He does not believe that competitors such as Ica or Coop are in a hurry to propose their own initiatives of this type.
– There is another type of business development that is more prioritized, I think. It’s ecommerce click and collect, I imagine this kind of topic is hotter than this one, he says.
Read more: The store where customers must be members to buy
