People choose low prices over wide choice

Low Prices, GroceryGrocery.Photo: Norway Today Media

Low Prices most important

In recent years, low prices in the grocery business have gained an ever-increasing market share at the expense of supermarkets, which have a larger range.

 

According to Aftenposten, figures from the analysis agency Nielsen, show that the low price segment has increased turnover by 20% since 2005.

During the same period, sales in supermarkets and hypermarkets fell by close to 12%, while sales in retail stores were halved.

– Low prices still grow at the expense of supermarkets. If they continue at this growth rate, low cost outlets will reach 80% market share in five to six years, says food expert, Arne Reiler of Reiler Consulting.

Worried on behalf of consumers.

– Without the supermarkets to challenge low prices, there will be a duller offer of goods in Norway. Supermarkets are where much of the innovation is happening, they are the outlets where the chains are testing new items for consumers, and where there is room for those consumers who want to experiment in food, he said.

At the same time, so called ‘innvandrerbutikk’ (immigrant shops) who can be found in many parts of the country – with a range and diversity never before seen in Norway – offer some of the lowest prices. They often charge a quarter or less for exactly the same product as is offered by the big supermarkets and chains, which may also well be a contributing factor beside consumer preference.

 

Source: NTB scanpix / Norway Today

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