Chocolate Price War Heats Up as Consumers Urged to Check Kilo Prices
Norwegian consumers are being advised to scrutinize the kilo prices of chocolate this Christmas season as retailers engage in fierce price competition,perhaps masking discrepancies in value. Consumer economist Viggo Gisholt highlights that differing weights of popular chocolate bars can significantly impact the actual cost per kilogram, even when prices appear similar.
This year’s pre-Christmas sales tactics are particularly aggressive, wiht supermarkets vying for customer spending during a peak retail period. While promotional offers may seem appealing, Gisholt warns that retailers frequently enough offset losses on discounted items by increasing prices on other goods, maintaining overall profit margins. The competitive landscape is further complicated by differing bar weights; Freia’s milk chocolate weighs 200 grams, while Stratos bars are 150 grams, both recently priced at DKK 29.90.This means consumers get more chocolate for their money with the Freia bar.
“That’s why they sit scowling at each other. They follow each other with arguable eyes. If one dumps the prices, the others follow suit,” Gisholt explained, describing the dynamic between supermarket chains. He added that retailers compensate for losses on promotional items by raising prices elsewhere, ensuring consistent earnings.
The practice of selling goods at a loss has also drawn criticism from within the industry. A Rema 1000 retailer reportedly questioned the logic of discounting popular items like ribs, which are in high demand during the holidays, stating, “Why should I sell ribs at a loss? It’s something everyone wants to buy.” Gisholt notes that many believe selling at a loss is a detrimental practice.
