(The newspaper online): Before the alleged price window of July 1, when prices are set normally, Extra launches a price cap of over 100.
Additional claims that they are price gouging to save people’s money.
NHH Professor Øystein Foros believes it is very important for Extra to take action now so they can show they are in the “game”. Foros also warns people to consider the maximum price the same as the bid.
Summer price ceiling
The list includes many typical summer products such as:
- Crown ice chocolate 6 packs
- 6 pieces of strawberry crown ice
- Grill Perfect Summer Ribs Cup 800 grams
- Gilde Grill Rib Book 1.5 kg
- Salma burger with pepper and lemon 220 grams
- Salma Korean burger 2 pack
- Delicate potato salad cream 420 gr
- A cup of barn corn
- Crispy lettuce
- melon
The price cap lasts until August 13th.
Reducing people’s money
– We guarantee that the prices of more than 100 popular summer items will remain at the current level or lower throughout the summer, Extra series manager Daniel Kyrre Pedersen tells Nettavisen.
This isn’t the first time Extra has taken a similar step. Last fall they put a limit of 200 items. Kiwi also has its own price lock which works in the same way. The prices of these commodities can be reduced, but they cannot be increased beyond the price ceiling during the period.
– You lock in the price of 100 items, how many items do you have in total?
– The total number of items in the stores varies somewhat depending on the size of the stores, and on average we have about 6,500 production lines in an additional store. This is a much larger selection than our lower-priced competitors, says Pedersen.
– At least cheap
– You have capped the price of 100 items now, will you increase the extra price on other items now?
– No, there will be no changes in the prices of other commodities as a result of this procedure. We should be at least as cheap as similar competitors in the entire range of commodities, says Pedersen.
– He says that how the prices of other commodities will develop in the future is impossible to answer.
– Rema has lowered the price because the suppliers have lowered the price, so why is it so impressive that you put a cap on the price of the goods now?
– When we re-launch price caps now, it’s about providing security for Norwegians. We’re now in a period of the year where prices are usually adjusted frequently, of which last week’s price cut, which Extra followed, is a case in point, says Pedersen.
– Not an offer
– As a consumer, you should be aware that the price cap only applies to a small group of goods in the store, says professor at the Norwegian School of Economics (NHH), Osten Voros to Nettavisen.
– Extra has not reduced the price of the goods, so they are not on display, the only thing Extra says is that the price of these particular goods should not go up during this period, he says.
Why is Extra doing this now?
– Extra doesn’t often win newspaper price tests, although the spreads with Kiwi and Rema are consistently very low. But it is very important that Extra is perceived as cheap as Kiwi and Rima. Foros says they rely on the consumer thinking the Extra is in “the game.”
He points to Kiwi’s successful ploy on February 1 when it held prices flat. He also thinks the Rema 1000 has done well in its recent price cut.
Extra has to do something now, and with this move they want to show that they’re also among the cheapest in the country, says Foros.
– The price window is on
Normally, the grocery industry had what are called two price windows where they adjusted prices after negotiating with their suppliers. The price window was February 1st and July 1st.
The full July 1 price window is in play now that Rema 1,000 has lowered the price of 250 items and stated that it will no longer be bound by price windows, says Foros.
He believes that there is significant uncertainty associated with Saturday 1 July.
– Chains may be keeping prices quiet, as Kiwi was the first to participate in the February 1 price window. He says there could also be a price increase.
— though Rema has cut back, and Extra now caps the price of just over 100 items, the prices of other items in the store can go up, says Foros.
He notes that the prices of raw materials have fallen somewhat, and that it is not certain that the chains have seen such a large price increase from the suppliers.
– Reducing prices from suppliers was the reason why Rema has cut prices recently, he says.
Extra says the price cap they are setting now is not related to standard price windows.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
