Several experts believe it will be difficult for the grocery chain, ‘Iceland’, to succeed in the Norwegian market. Purchasing conditions are likely to be the biggest challenge.
Last week it became apparent that the British grocery chain, ‘Iceland’ plans to open more shops in Norway in the near future.
Several food experts Nettavisen newspaper has talked with believe that it may be difficult for the newcomer (largely based on frozen food) to succeed in the Norwegian market.
“Iceland has no chance if they do not create many establishments in Oslo. Moreover,it will be difficult to obtain good drivers from their stores. The best are already at Rema,Kiwi and Extra,’’ said Odd Gisholt, a grocery expert at BI Norwegian Business School to Nettavisen.
Bad purchasing conditions, compared to Rema, Coop and ‘Norgesgruppens’ shops, are one of the main reasons for the success of new food retailers in Norway in recent years.
“There is nothing else to do than wish for Iceland’s happiness, but I think they face major challenges in terms of purchasing conditions and access to premises,” said senior economist, Jostein Skaar of Oslo Economics.
Former Coop and Nortura chief, Geir Olav Opheim, is a member of the group who will get Iceland on track in Norway. He is aware that the chain will meet some challenges.
“We depend on there not being too big differences in things like purchasing prices. These must be levelled out. This is only one issue that must be solved’’, said Opheim to Nettavisen.
© NTB Scanpix / #Norway Today