The three leading low-cost chains will open 113 new stores during the year. The establishment race can lead to an over-establishment, Kiwi boss acknowledges.
Despite weak growth in the grocery market, Kiwi, Rema and Coop Extra will open 113 new stores in 2019, according to figures Dagens Næringsliv has obtained from the chains.
Kiwi, which with 664 stores has the most but lower average turnover than Rema, has in recent years begun to collect Rema in the fight to be the country’s largest discount chain. Rema responded with a major investment in new stores, without Kiwi first following the trend. Last year, however, Kiwi established 14 new stores, and this year, 20 new stores will be opened.
– It is development or liquidation, says Kiwi chief Jan Paul Bjørkøy.However, he acknowledges that the race can lead to over-establishment.
This year, Coop Extra warns 73 new stores, which will give the chain 500 stores in total. Rema, which has 634 stores, wants 20 new stores this year.
“I’m not worried about over-establishing in the market, but the fight is all about being the best at both cheapest prices and large selection, which we see our customers value,” says Extra-boss Christian Hoel.