The corona crisis has largely affected the retail trade, but the quarterly report shows the same price trend as we saw last year.
This week we see that there is little difference between the low price chains. Kiwi comes out best in the price test of the week’s shopping cart – 40 cents lower than Rema 1000, while Extra comes in third – a little more than Rema.
– We see that the door to the supermarkets is a little smaller this week, which is partly explained by the fact that some prices have returned to “normal” again, says Tom Ystaas, price manager for Enhver.no.
Read also: The figures show how much more expensive goods and services are in Norway than in the rest of Europe
Greater distance
However, we have had the main focus on the quarterly report this week. It shows the price difference between the chains over the past three months, not just in a single week (which we test every week).
Kiwi is the cheapest, and the distance up to Rema 1000 is lower this quarter than the first quarter. The distance from Extra and down to Kiwi, on the other hand, has increased from 1.08 to 1.26 per cent. However, Kiwi wins on fruits and vegetables, while Rema is the cheapest on other goods in the second quarter.
– The three low-cost chains remain very stable. Obs is almost three times more expensive than Kiwi in the second quarter compared to the first quarter, says Ystaas.
– Supermarkets are far behind the low-price chains on price. In the first quarter, they were up to eight percent behind, but now there is almost a 15 percent difference between Meny at the bottom and Kiwi at the top, he says.
“There is a huge difference in the distance between the low-price chains and the supermarkets in the first and second quarters,” he adds.
Also read: How much you save on the grocery distribution program (+)
Saves over 2000 kroner
Looking at the total for the first half of 2020, the supermarkets are at a normal distance from the low-price chains, with up to 12 per cent behind the award-winning Kiwi.
If you have been shopping at the discount chains for the past six months, you have saved yourself a lot of money. In total, the shopping carts Nettavisen has tested the prices for the last six months, about NOK 3000 more expensive at Meny and Spar than at Kiwi and Rema. We also see a large price difference in the second quarter.
– There is a lot to save at the low-price chains in the second quarter, as a total of more than NOK 2000 separates the shopping baskets at Kiwi and Meny, says Ystaas.
Also read: If you choose these items you can save over NOK 5,000 in one year (+)
If we compare the first and second quarters of 2020 with the first two quarters of 2019, we see the same trend. This also indicates that the corona crisis has apparently had no impact on prices overall.
– We see that prices go in the same cycle. Also in 2019, there was about the same price difference between the low-price chains and the supermarkets that we see in the first and second quarters of this year, he says.
The price expert explains that even though the price war at Easter ended this year, we got it after the Easter holidays when Kiwi launched a big price cut.
However, Ystaas points out that the trend where the differences between the low-price chains are low continues this year, and he believes this is because they have gained better knowledge and become better at monitoring each other.
Read also: Coop goes to the throat at Findus: Must produce own frozen vegetables and french fries
Great price cut
The corona crisis has affected the grocery industry throughout the second quarter, and it was precisely the grain pandemic that led Kiwi to cut prices of over 200 items by 20 percent in April.
– Many people have had poorer finances in recent weeks, and everyone has been encouraged to contribute in the long run. One of the most important things we can do is push prices, in addition to providing enough goods and normal, safe operation of the stores, communications manager Kristine Aakvaag Arvin told Nettavisen in April.
Rema 1000 and Extra followed, but when this promotion was over for Kiwi’s June 15 episode, they chose to run with a new campaign with a big price cut.
In April, it was also revealed that the corona crisis has created a billion growth for the grocery industry, and experts believe what you are looking for in the store has changed forever.
– We have seen more short-lived food and supported local producers, especially Meny has been in the lead. Meny has lowered prices for such goods and given extra back to local producers, and I think that is a trend we will see more of, said retail expert Odd Gisholt to Nettavisen.
Price shock in the first quarter
In the first quarter, we also saw that several items had gone up in price. On eight random items, we saw that the price had gone up by ten per cent compared with the results in the first quarter of 2019.
– What we’re seeing is a pretty formidable increase. I think it’s a little overdue, and I think it’s one of the highest price increases I’ve seen from one quarter of a year to another, “said Ystaas.
In the first quarter, we saw that the price of Stjernbacon had gone up 33.5 percent from the first quarter of 2019 to the first quarter of 2020. By contrast, the 1 liter Piano Vanilla Sauce went down by a full 15 percent.
– Important to cut prices
Kristine Aakvaag Arvin, communications manager at Kiwi, points out that we are in for a demanding and extraordinary time where many have less to contend with.
– Then it’s more important than ever that we push prices and make food cheaper, she says.
She points out that price surveys show a snapshot.
– But we are pleased that Nettavisen’s surveys confirm that Kiwi is the cheapest, she says, adding:
– We never give up on price and should always be the cheapest, regardless of who you compare us to.
Below you can see the prices of this week’s shopping cart. Note that prices may have changed somewhat after the test was performed.
