Last year, grocery prices fell by 0.4 percent. Nevertheless, the low-price chains will open at least 50 new stores during 2020.
– “The market is almost flat. The background for the stagnation is complex. People have become more conscious of their own consumption and are throwing less food. At the same time, grocery stores face increased competition through industry slippage and border trade, as well as people shopping more food on the go,” says Kiwi CEO Jan Paul Bjørkøy to Dagens Næringsliv.
Figures gathered by the newspaper show that Rema expects to open 20 stores by 2020. So does Kiwi. Coop Extra, in turn, plans to close 500 stores this year, which equates to at least 22 new stores. Some of these are redeployments from the sister chain Prix, but at least a two-digit number should be pure new start-ups.
In recent years, many new low-cost stores have been established, while sales growth has been low.
– “I am not worried, but it is important to regain growth. There are different ways to do this, by selling better or other products. We have focused on industry slippage by lowering the prices of, for example, hygiene and washing products,” says Bjørkøy.
© NTB Scanpix / #Norway Today