Swedish Grocery Prices Under Scrutiny as Border Shopping persists
OSLO, Norway – A recent price comparison reveals a complex landscape for cross-border grocery shopping between Norway and Sweden, with Norwegian consumers continuing to seek lower prices across the border despite some price discrepancies being less significant than perceived. The analysis,conducted by nettavisen.no, highlights the impact of differing VAT rates, value chain costs, and promotional strategies on the final price consumers pay.
While some goods remain cheaper in Sweden, prompting continued cross-border trade, Norwegian grocery chains are responding by emphasizing overall basket costs and selection. The findings come as Norwegian shoppers increasingly navigate a cost-of-living crisis and seek ways to maximize their purchasing power, making price transparency and understanding the factors influencing grocery costs more critical than ever. This ongoing dynamic impacts both Norwegian retailers and Swedish border communities reliant on Norwegian shoppers.
Norwegian prices were largely verified with the countryS largest grocery chain. Kiwi Norway attributes price differences to higher food VAT,increased costs throughout the supply chain – including employee salaries,rent,and transportation – and specific taxes like the sugar tax,which are not present in Sweden.
“Kiwi Norway has higher food VAT, higher costs in the entire value chain, such as salaries for employees, rent and transport, as well as special taxes such as sugar tax which do not exist in Sweden,” explained communications manager Nora Helgesen. She also noted the availability of cheaper First Price alternatives not included in the price test.
Patrik Zäll, manager of the large grocery store at Nordbysenteret in Sweden, acknowledged that some goods are more expensive in Sweden but stated that frequent cross-border shoppers are accustomed to this.
“It is always significant that customers are price conscious. We know that a few goods cost more in Sweden, but the price-conscious cross-border trader is used to shopping in Sweden,” Zäll saeid. He emphasized that the total cost of a shopping trip, combined with the store’s selection, remains a key driver for Norwegian shoppers.
“It is the final sum of the entire receipt for the trade that is most importent, and the selection we have in our store is a large part of why people also choose to shop across borders,” Zäll added.
