(electronic newspaper): Rema 1000 is reducing the price of 215 items, and the new top manager is ensuring that they will not set further prices to raise funds elsewhere.
– This is real, without footnotes, real and honest. Prices from the supplier come down, because their costs are lower, and we take that out to the market, says Christian Hoyle, CEO of Rema 1000. E24.
Here are some price reductions:
- Frilly filter coffee 250g: 44.90 (-4.00)
- Parmigiano cheese, 150g: 59.90 (-12.50)
- Nora Raspberry Jam 540g: 40.10 (-3.60)
Price reductions vary widely for individual items, and on average price reductions are a modest 2.5 percent. Nettavisen wrote last week about Kiwi cutting prices on 65 best-selling books. All of these have been reduced by 20 percent or more.
Kiwis take over prices: big discounts on best-selling books
February takeover
The price reduction comes days before the end of the month. February 1st was traditionally the so-called price window in Norwegian grocery stores. All chains then adjusted their prices after negotiating with their suppliers throughout the fall.
Last year, Kiwi surprised everyone when it chose to keep its prices on February 1, while Rema 1000 and Extra raised them.
But now Rema is taking 1,000 actions just days before the calendar comes out on February 1.
– Continuous negotiations give us the opportunity to be closer to price throughout the year and challenge suppliers when we know things are happening in the market, Category and Procurement Manager Line Aarnes tells E24.
Expected price reductions
That there will be price cuts rather than price increases now is also in line with what the grocery expert and NHH professor predicted when he commented on Nettavisen's price test recently.
– February 1 represents a great PR opportunity for chains. “That's when they know they have people's attention,” Foros Netavisen said.
– It is possible that one or more of them may choose to make deeper price cuts. The NHH professor said it was the opposite of what was popular and therefore would attract a lot of attention.
Now that's exactly what the Rema 1000 does.
Kiwi strikes again in the price test: losing to Rima and Extra
Extra will be cut
Extra says they will lower prices if the Rema 1000 turns out to be cheaper on some items.
– As the first low-priced chain, Extra started the year with a sharp price cut on more than 150 daily products by an average of 7.5 percent, says chain manager Håvard Jensen.
– This came as a result of lower prices from our suppliers, which we passed on to consumers. “After that, we adjusted prices further on a large number of items,” he says.
Kiwi: – This small price reduction
Kiwi's comments on the price cut of the Rema 1000 are as follows:
– Kiwi should of course always be the cheapest, and this small 2.5 percent price reduction has been adjusted with us as of this morning, Nora Helgesen, Kiwi's communications director, tells Nettavisen.
They point to the cuts they made themselves last week.
– Helgesen says that the price reduction that we started on Monday of last week is 20 percent or more, and is valid until February 29.
-For us, the most important thing is to gain customer trust. “That's why we will continue to pressure prices in 2024 as well,” she says.
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