Food bills likely to rise as Norwegian retailers end price guarantee offers
Hundreds of everyday products in Norway are likely to become more expensive as price guarantee deals offered by the largest supermarkets have now expired.
Norwegian supermarkets have been locked in a price war since February, with price freezes on hundreds of products despite increased costs from suppliers and foreign markets.
Supermarkets were expected to raise prices wholesale in February as part of bi-annual price adjustments. However, supermarket chain Kiwi locked prices on 100 everyday products on top of 145 items already subject to a price freeze.
This price lock forced the supermarket's low-price competitors Coop Extra and Rema 1000 into following suit, meaning sharp food price rises that many expected and grocery chains warned of never materialised.
READ MORE: Could Norway's weak krone mean new food price hikes?
New prices expected soon
However, now, Kiwi's price lock campaign – which was set to last until May 1st – has ended.
"The campaign has now ended. We still haven't set the prices today," communications manager Kristine Aakvaag Arvin told the newspaper VG on Tuesday.
With Kiwi ending its price freeze guarantee, its competitors may choose to also up the prices of products that had been subject to the price lock. As Kiwi belongs to Norgesgruppen, which has the largest market share in Norway's grocery industry, it has been able to easier afford the price competition.
This is because Norgesgruppen is able to secure better deals from suppliers due to its large market share.
Arvin didn't say how the chain would change its prices in the future but noted that they would replace the current price lock campaign with a new price lock campaign focusing on healthier products that will run until August.
That would mean a fixed price for over 150 items, 100 of which would be healthier product options.
The new "healthy" price lock will affect many popular products such as chicken fillets, prawns, spinach, some salmon products, some cheese, and others.
The locked prices will be at the same level as September 2022 or lower until August, meaning that they cannot go up but can go down.
"This time, we have selected popular, healthier options to inspire customers to make healthier choices. Norwegians eat too little fish, and fish spreads are a great way to eat more fish," Arvin said.
There has been no word of similar campaigns from low-price competitors as of the time of writing, but – based on previous industry developments – new campaigns by Coop Extra and Rema 1000 would not come as a surprise.
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Norwegian supermarkets have been locked in a price war since February, with price freezes on hundreds of products despite increased costs from suppliers and foreign markets.
Supermarkets were expected to raise prices wholesale in February as part of bi-annual price adjustments. However, supermarket chain Kiwi locked prices on 100 everyday products on top of 145 items already subject to a price freeze.
This price lock forced the supermarket's low-price competitors Coop Extra and Rema 1000 into following suit, meaning sharp food price rises that many expected and grocery chains warned of never materialised.
READ MORE: Could Norway's weak krone mean new food price hikes?
New prices expected soon
However, now, Kiwi's price lock campaign – which was set to last until May 1st – has ended.
"The campaign has now ended. We still haven't set the prices today," communications manager Kristine Aakvaag Arvin told the newspaper VG on Tuesday.
With Kiwi ending its price freeze guarantee, its competitors may choose to also up the prices of products that had been subject to the price lock. As Kiwi belongs to Norgesgruppen, which has the largest market share in Norway's grocery industry, it has been able to easier afford the price competition.
This is because Norgesgruppen is able to secure better deals from suppliers due to its large market share.
Arvin didn't say how the chain would change its prices in the future but noted that they would replace the current price lock campaign with a new price lock campaign focusing on healthier products that will run until August.
That would mean a fixed price for over 150 items, 100 of which would be healthier product options.
The new "healthy" price lock will affect many popular products such as chicken fillets, prawns, spinach, some salmon products, some cheese, and others.
The locked prices will be at the same level as September 2022 or lower until August, meaning that they cannot go up but can go down.
"This time, we have selected popular, healthier options to inspire customers to make healthier choices. Norwegians eat too little fish, and fish spreads are a great way to eat more fish," Arvin said.
There has been no word of similar campaigns from low-price competitors as of the time of writing, but – based on previous industry developments – new campaigns by Coop Extra and Rema 1000 would not come as a surprise.
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