Kiwi and Rema 1000 Face Market Share Declines, Raising Grocery Price Concerns
Grocery chain Kiwi is experiencing significant challenges in maintaining market share, particularly in rural areas, while Rema 1000 disputes claims of weak competition despite facing similar pressures. The developments are sparking debate about potential impacts on grocery prices nationwide.
Recent data reveals a shifting landscape in the Norwegian grocery market. Kiwi, traditionally strong in smaller communities, is seeing stores close due to dwindling customer bases. Concurrently,Rema 1000 is defending its competitive position amid accusations that limited competition is driving up costs for consumers. The situation highlights the delicate balance between maintaining profitability and providing affordable groceries across diverse regions.
According to analysis,politicians require more detailed information regarding market share developments for both chains and their suppliers.Strøksen points out that Coop currently holds the highest market share in areas with low population density. “The challenge here is not that you lose customers to the competitor, as foros claims, but that the customer base is so small that the store has to be closed,” Strøksen stated.
Rema 1000 purchasing director Line Aarnes strongly rejects the notion of weak competition. “The competition in groceries is fierce, both locally and nationally, and we work every day to give our customers the cheapest groceries in the country,” Aarnes said. She emphasized that all Rema 1000 stores operate under a universal pricing principle, with regional variations only applying to fresh produce based on factors like lot, origin, and transport costs. “This means that the competition in, such as, Bodø or Oslo also benefits customers in other parts of the country,” she added.
