Denmark's Salling Group has set a price ceiling for 100 everyday SKUs in Netto and 200 SKUs in Bilka and føtex.
The move guarantees that the price of the selected goods will not increase until 28 October, despite the continued increase in inflation.
Higher prices for energy, transport, and raw materials have created rising consumer prices and inflation, which is putting pressure on Danish consumers' personal finances, the retailer said.
Until the end of October, Netto, føtex, and Bilka will set a ceiling on the price of basic daily and food items, guaranteeing that the price will not be raised during this period.
"We share economists' expectations that inflation will continue and that prices will thus rise for the rest of the year," commented the CEO of Salling Group, Per Bank. "Over the past months, customers have been hit by sharp price increases on everything from petrol to milk.
"We therefore guarantee that the price of selected basic groceries will not develop further over the next five months despite rising inflation and higher prices from our suppliers."
Should the market unexpectedly change and prices fall, the prices of the selected goods in Netto, føtex, and Bilka will reflect the decrease.
Private Label On The Rise
Rising consumer prices have created a marked change in the Danish public's purchasing patterns.
Consumers are increasingly turning to own brands as an alternative to branded goods in Salling Group's stores and department stores.
"Our own brands are more in demand than ever, and here we also have the best opportunity to offer customers stable prices," Bank added. "However, customers continue to shop for well-known brands, and therefore we also hope that we, together with suppliers, can help consumers through this time when household budgets are challenged."
On 1 November, Salling Group will assess whether the period will be extended.