Rema 1000 CEO Pledges Return to 'Fixed, Low Prices' to Regain Market Lead

Rema 1000 CEO Christian Hoel is launching a new price strategy, aiming to eliminate confusing "jumpy" prices and return to the company's roots of "fixed, low prices." This initiative, which locks in prices for 170 everyday items through the end of the year, is designed to regain the top spot as Norway's largest grocery chain from competitor Kiwi, a position Rema 1000 held for over two years.

Hoel, who has been CEO for two and a half years, expressed dissatisfaction with the current grocery market's price dynamics. He noted that customer surveys reveal significant confusion about actual product costs due to frequent promotions. "We are going back to our roots, to full price trust and always fixed, low prices," Hoel stated, emphasizing a shift away from the constant campaign-based pricing that he believes disorients consumers.

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We are going back to our roots, to full price trust and always fixed, low prices.

The campaign, which began around Easter with price cuts and locked prices, is now expanding as the school year starts. Rema 1000 will focus on consistently low prices for essential items like those needed for dinner, while scaling back promotions on less critical or unhealthy products. Coffee, a strong traffic driver, will still be part of promotions, but the core strategy revolves around predictable pricing for staples.

Hoel believes this approach will foster greater customer trust and differentiate Rema 1000 in the market. He acknowledged that competitors will still engage in price wars, stating Rema 1000 will remain competitive. However, the emphasis is on building long-term trust through stable pricing rather than participating in every promotional fluctuation. "We must be competitive. Every day, every week," Hoel said, but stressed that the commitment is to fixed, low prices, not just matching every competitor's temporary discount.

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We must be competitive. Every day, every week.