After several years of declining customer base, Rema has finally won the battle for customers during the current coronavirus crisis. In March, the chain increased its market share by 0.3 per cent.
According to Dagens Næringsliv, Rema increased its market share from 23.3 to 23.6 per cent in March. Competitors Norgesgruppen, Coop, and Bunnpris had a corresponding overall fall of 0.3 percentage points in market shares.
Although the changes in percentage points may look small, they make up large sums. In 2019, groceries in Norway were sold for 178 billion kroner, according to the Nielsen analysis agency.
In recent years, Rema has lost market share in the battle for low-budget customers and in 2016 had a market share of 24.4 percent.
A possible turning point
Rema chief Trond Bentestuen told the newspaper that the development in the past month may be a turning point.
“Yes maybe. There has been a different situation where parts of the turnover from hotels, restaurants, and cafes have moved to the grocery market. In addition, the Swedish shopping trend is gone,” he explained
Rema’s growth in March came as a result of Kiwi’s cutting prices for 200 items by 20 percent last Friday. Kiwi estimates that the price cut will cost around 200 million kroner.
Coop responded to Kiwi’s price war, saying they would cut prices on the same 200 items as Kiwi, in addition to 25 other items. Rema then said that they too would find the same, low prices that their competitors were advertising.
Rema won the VG food exchange
In the VG Food Exchange, which was published on Thursday, Rema had the lowest overall price in a 43-item price check at the three low-price competitors.
These items cost 8.70 kroner less than at Kiwi and 24.33 kroner less than at Coop Extra.
© NTB Scanpix / #Norway Today