This will be the third major price cut the grocery chain makes this year. Experts believe this could give Kiwi an advantage in the industry.
– Overall, we have had great growth during the corona pandemic, which is partly due to the halt in cross-border trade. As we grow, it gives us the opportunity to push even more on the price. It is right and reasonable to share with our customers, says Kristine Aakvaag Arvin, communications manager at Kiwi, to Nettavisen.
– There is still a demanding and extraordinary situation in Norway due to the corona pandemic, which affects differently. Many families notice this very much in the economy, she continues.
That is why they are now launching a new and large price campaign for the third time since April. Last time Kiwi cut prices, it was by 20 percent on around 200 items, both June 15 and April 17. The last price campaign was over on August 1st.
The new price cut lasts until October 3, applies to 131 items with price cuts of between ten and 35 percent.
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Will win more customers
Arvin says that they have chosen goods they think are important to customers, and that they will notice that it will be cheaper to buy what they use a lot of.
Such a campaign that they are starting again now, she believes will give them more benefits.
– We run a shop, and our goal is always to win customers. They should have confidence that we are the cheapest and continue to push prices, she says.
– We know that the revenue growth we are experiencing now will not last forever. But we hope that people will continue to shop more locally even when society is released more and it opens up for cross-border trade again, says Arvin.
She points out that they will not be able to match Swedish prices for tax-heavy goods, but they will rather continue to focus on good service, quality and facilitate healthy and good choices.
– We hope that it will be a competitive advantage in the future, she says.
Below you can see which items they cut the prices of:
Takes a position in the market
Tor Wallin Andreassen, professor at the Norwegian School of Management and expert in marketing and entrepreneurship, believes that Kiwi’s price cuts can be very positive for the chain.
– It shows that they take social responsibility in the middle of a pandemic, at a time when many people are without income and an uncertainty about their income. In isolation, it is therefore a good move, he says.
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At the same time, it helps to build the brand attitude of people, he believes. First, they show that Kiwi never gives up on price, and drive towards Rema 1000. At the same time, they show that they are a socially responsible player.
– In sum, this helps to create a preference for Kiwi, in a product market that is otherwise completely flat and gray. This can help to increase the use of Kiwi as a supplier, says Andreassen.
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He explains that this will give Kiwi a marginal increase in sales and volume, and slightly better purchasing conditions or more power when purchasing.
– They can get more power to get suppliers to push prices, he says.
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– Positive for consumers
Grocery expert Tom Ystaas in Enhver.no believes Kiwi’s price cuts are positive for consumers.
– This is very good, and positive for consumers. The most important thing is that someone pushes prices, because that is what consumers want, says Ystaas.
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He thinks that this may be part of a larger plan Kiwi has, and that they want to continue to grow and build their brand and show that they are the most affordable chain over time.
– Price is important for people’s choice of grocery store, but location also has an impact on where you choose to shop, he says, and points out:
– This year we have seen that the low-price chains have followed each other quite closely, and that they are quite similar in price.
Here you can see the list of which items Kiwi is cutting prices on from Monday.
