Real happy news for the people of Grandis! But what do shops gain from this belief?
The short version
- There is a price war on the Grandiosa: it now costs NOK 20.86 in discount chains.
- Grocery expert Odd Gesholt says stores are selling at a loss, and that only customers benefit from all grocery chains agreeing to the same low price.
- Geschulte also believes that other frozen pizza brands will follow suit, and that we will see a bigger pizza price war.
- Kiwi Rælingen says they have sold out in large quantities. On Tuesday, they set a limit of 3 Grandiosas per customer.
Nothing, we have to believe grocery expert Odd Giesholt:
-Shops that offer this sell at a loss. So the question is who bears this loss?
Discount chains stepped in and on Monday morning dropped the price of all Norwegians' favorite frozen products.
Now it costs NOK 20.86 for a Grandis in the lower-priced Coop series Extra, Kiwi and Rema 1000.
This is the lowest in several years, according to the report The newspaper online. The price of a popular product is usually between 40 and 60 NOK.
– There is a fierce battle between the three low-priced chains. The overall market is very static right now, and the only way to survive is to steal market space from your competitors. They're constantly trying new things, Gesholt says.
– But the only people who can enjoy this are you and me as consumers. It is a gift package for customers.
Grocery expert
Last week, frozen pizza company Dr. Oetker made a bid on its wares. Giesholt believes Grandiosa's battle for customers is the beginning of a full-scale pizza price war.
– It is likely that there will now be a price war on all types of pizza. This will affect other pizza brands for a short period of time, but they will likely follow along and learn about it.
It was Coop's Extra that started things off. It didn't take long for other stores to follow suit.
– This is what the game is about. At certain periods, they sell at a loss, hoping that customers will come to them from their competitors.
Stores constantly reduce prices to attract customers. Last fall, the decline in prices coincided with a reduction in fish prices.
In February, we can read on the VG Food Exchange that the price war in the food industry is intensifying:
Read also: VG Food Exchange: Intense price war!
– But is there any point in dumping the price when everyone has done it, and the price is the same everywhere?
– No, this whole game is actually something we should stop at. But the chains follow each other with cross eyes and are afraid of losing customers, which is why they do it.
Why Grandiosa?
This isn't the first time grocery chains have fought over customers who use Grandiosa as a lure. Also in January, a price war broke out on the popular product, when the price was reduced to 29.90.
-We Norwegians are a pizza-loving people, and Grandiosa has a lot of power. If you have a refrigerator, you can buy several at once.
– Will it be pizza?rationing?
– no. But like I said, we're pizza-eating people. It's easy and convenient and there are many good pizzas to choose from. When I go to the fridge there can quickly be up to 50 different pizzas.
Shop kiwi legalization
However, those who were going to stock up at Kiwi Rælingen on Tuesday were met with this sign:
– We sold large quantities of Grandiosa and saw ourselves having to set a limit today to avoid running out of stock before the next delivery, wrote store manager Øyvind Kjeld in an SMS to VG.
– Fortunately, we are receiving more Grandiosa deliveries throughout the week.
Kiwi communications manager Kristine Aakvaag Arvin told VG they were not encouraging stores to place restrictions.
– It's something we do exceptionally well. This was done here in the best sense, because they saw that they were running out, and for the sake of the customers they then chose to put an end.
Communications Director at Kiwi
She doesn't know that there are many Kiwi stores that have set limits on the number of Grandisers per person.
– I can't remember that the price of Grandiosa was so low, you say.
– Kiwi promised customers that we would be the cheapest no matter what. So when there is a promotion with a lower priced competitor, we lower the price accordingly or more. It can happen that some stores run out of stock when the price is too low.
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