The low-cost market is increasing | Finansavisen

In bad economic times is it natural that the low-price segment within the grocery market is increasing, and 14 interest rate increases, negative real wage growth and high price growth in general have led to the “cheap shops” taking market shares.

Then we talk about the green, blue and red. And the marketing becomes simpler and almost primitive.

The Extra chain (Coop) got a new CEO last autumn, and he can’t bear to say the names of the competitors, which are Kiwi and Rema 1000. Håvard Jensen only talks about colours.

It’s a bit sweet, as former Orkla boss Jens P. Heyerdahl dy did, but also a bit childish.

In E24, Håvard Jensen can tell that as long as Extra (the reds) “is ahead of the greens and the blues, I will be satisfied. The most important thing for us is to be at the forefront”.

That is a gross exaggeration. At the turn of the year, Extra had a market share of 17.3 per cent, while number 1, Kiwi, had 24.1 per cent and Rema 1000 had 23.8 per cent.

Extra is far from the top or the tip, but Jensen says that Extra has increased its market share by 0.6 percentage points so far this year. That is more than the competitors, he says.

The Kiwi and Rema tops 1000 are probably smiling a little, but they take the competition seriously. We are talking about a market of NOK 215 billion.

But it’s almost unbelievable that these low-price chains so unilaterally focus on price cuts in their marketing. In slightly bad economic times, it happens like this, but now it has completely taken over.

Kiwi, which belongs to NorgesGruppen, started with price cuts for large product groups and guaranteed low prices for a long time. “No one should beat us on price,” it said.

It seemed obvious, because among the cheap chains Kiwi increased the most in 2023 with 1.6 percentage points.

Rema 1000 owner Odd Reitan, who invented this price drive obviously didn’t like Kiwi’s progress and now Rema 1000 has been running a price campaign very similar to Kiwi’s for months. A bit naive with the message that “it’s the final sum on the till slip that counts”.

That’s exactly what no one can understand.

Extra may increase a little now, and it’s a bit strange, because the marketing is a bit like commissions.

The figures in 2024 must show that it causes customers to change chains.

Nor is it completely correct progress if Coop rebrands its Prix stores to Extra.

We think Extra boss Håvard Jensen will have a tough time becoming the biggest. Some of us want better shops, better parking and a better selection of goods. Then we jump to Menu. Not to the reds.