(NetVisionThis week, Rema 1000 is offering half price for all fruits and vegetables. The grocer thinks the timing isn’t accidental.
Today is the day grocery chains can play a bad conscience because we ate too much marzipan and a quick lunch and Easter sausage. That’s what Eric Fagerlid, a grocery expert, told Netavizin.
He says one sees similar campaigns right after the excesses during the summer holidays and the Christmas holidays. And as Nettavisen realizes, such a highly discounted campaign on fruit and vegetables is a novelty among low-cost gamers. However, all chains have fixed discounts on this product category of 10 percent (rema), 11 percent (extra) and 15 percent (kiwi).
Fagerlaid believes Rima’s latest ploy is an attempt to get consumers to change their shopping patterns. In recent years, Rema’s market share has remained stable, while Kiwi and Extra’s has risen sharply.
Chains are constantly trying to change our consumer habits. What we eat and what we buy is quite consistent in most consumers, so it is not stupid to gamble on a bad conscience, he says.
Grocery expert assures that Rema 1000 does not make money from such big discounts.
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Chains run campaigns regularly
This is not the first time that Rima has launched such a campaign.
Previously, they had, among other things, a similar crackdown on half-price frozen pizza.
The short-term effect is to attract customers to the store. When you first enter the doors, you’re not only buying fruits and vegetables, but the rest of your cart as well. Instead of shopping three times a week at Kiwi, you are now drawn to competitor Rema 1000.
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Fruits and vegetables are the exception
Fagerlid has the support of Øystein Foros, Professor of Economics at the Norwegian School of Management, NHH.
He also doesn’t think the chain will make any profit from fruits and vegetables this week. Foros also points out that fruits and vegetables fall into an entirely separate category.
Usually, Norwegian grocery chains have the same prices no matter where you are in the country. But not when it comes to fruits and vegetables.
Don’t run national prices on this product category, there are local variations, says Foros.
– What do you think is the reason for the campaign?
It’s about breaking the consumer’s shopping pattern that usually goes to the competitor, so one hopes it will have a lasting effect. These types of campaigns are often seen in department stores, he says, and point out that it’s all about setting oneself up and contributing to the perception that it’s cheap.
Among other things, the menu offers a flat offer of 30 percent off fish every Tuesday. This week, the supermarket has half the price of taco products. In addition, the chain conducts regular deals with discounts on a number of products, as well as two-for-one.
At the same time, surveys show that Minnie charges up to 70 percent more on identical individual items.
Tor Wallin Andreassen, professor of economics at the Norwegian School of Management (NHH), previously stated that Meny is Rolls-Royce’s grocery maker, which is part of the explanation for why it charges so much surcharges on merchandise.
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Healthy meals after Easter
The online newspaper has been in touch with Rema 1000, to find out why they are running this 50 percent campaign on fruits and vegetables this week, and what they want to achieve. We also asked them to comment on Foros’ statement that the chain won’t be making money from fruit and vegetables this week.
– We will sell groceries cheaper in Norway. Now we want to give our customers a “crunchy” cut in prices Æ, so they can fill their cart with plenty of fresh fruits and vegetables to prepare healthy, delicious meals after the Easter holidays, says Pia Milbay, director of sales and marketing at Rema 1000 to Nettavisen.
It further says that Rema has been cutting prices for more than 40 years, which they believe is thanks to their philosophy of efficient operation, low costs, and high volumes.
We know our customers will appreciate fruits and vegetables at half the price along with other inexpensive items that fill their cart, says Millbay.
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