Decline for Rema 1000 in a tough grocery market
Rema 1000 loses market shares to Coop-owned Extra in a declining grocery market, reports the quarterly report from the analysis company Nielsen.
Extra, which is owned by Coop, has sold goods worth NOK 2 billion more than at the same time last year in a market where growth is declining, writes Nettavisen. Extra increases its market share from 11 to 12.5 percent so far this year, according to E24.
Competitor Rema 1000 has lost 1.4 percentage points of its market share from the second quarter last year and ends with a total of 23.5 percent of the market. The development in the second quarter of this year constitutes a decline of 0.2 percentage points for Rema 1000, writes Dagens Næringsliv.
Norgesgruppen leads the pack
The analysis agency Nielsen presented a report on the grocery market Tuesday morning. Overall, the analysis shows that all Coop’s business areas take 0.1 per cent more of the market and thereby increase their market share to 29.3 per cent.
Norgesgruppen maintain their undisputed place on top of with a market share of 43.3 per cent. They also gain 0.1 percentage points.
The low price Kiwi chain increase the market share by 0.9 percentage points, from 20.1 to 21 percent.
Serious for Rema
Rema 1000 has not commented on the numbers, but Reidar Molthe in Daglivarehandelen.no tells VG that the situation for Rema is serious.
– Rema is in a serious situation because they lose market share while their competitors are gaining. In this market, the weight counts: Those who gain market share get better prices. Those who lose get less, says Molthe.
CEO of Extra, Christian Hoel, tells Nettavisen that the chain plans to establish more stores in the coming period.
According to Nielsen, low price shops now constitute 67.4 percent of the total market, while local stores have a market share of 6.5 percent. Wide range stores make up 26.1 percent of the total market.
– This is mainly due to increased number of low price outlets, says Nielsen.
© NTB Scanpix / Norway Today