Denmark's Dagrofa has welcomed the Danish Government's proposal to negotiate the possibility of freezing energy prices to help vulnerable businesses experiencing a sharp rise in energy costs.
Dagrofa, which operates the grocery chains Min Købmand, Let-Køb, SPAR and MENY in Denmark, added that the announcement gives cause for 'cautious optimism'.
Tomas Pietrangeli, CEO of Dagrofa, said, "I would like to acknowledge the government's initiative and for listening to the many local grocers who are currently experiencing difficulties in balancing budgets due to sharp increases in energy prices.
"If the proposal for a freeze model is adopted, it will be a political gesture that strengthens the cash flow of individual merchants. In this context, it is important that the proposal becomes a reality as soon as possible and that it is as easy as possible for the individual merchant to make use of it."
Pietrangeli called for even more political initiatives, such as financial support to cover the extraordinary costs and to invest in more energy savings in individual shops.
"In many places in Denmark, the grocery store is the lifeblood of the local community, and it is therefore important for cohesion that they get through the energy crisis," he said.
He added that merchants are "working hard to save electricity wherever possible, and it makes a difference if they improve their cash flow through a freezing model".
In April of this year, the Danish retailer announced that it returned to profit in 2021 after eight years of losses.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.