Denmark's Salling Group is launching a new discount chain, BASALT, which it says will offer cheaper prices than traditional discount stores.
The chain will offer goods that are on average 15% cheaper than discount store rates, the retailer said, as the format relies on a smaller assortment and reduced opening hours to cut costs.
A limited product assortment will enable Salling Group to reduce the number of weekly deliveries to the store.
The goods will be presented on pallets in the store and packaged directly on the shelves, reducing handling costs, the retailer added.
The chain will not offer refrigerated or frozen food items, thereby cutting half the energy costs.
In a further attempt to save staff and energy costs, BASALT stores will remain closed in the evenings.
CEO of Salling Group, Per Bank, explained "Many Danes are experiencing severe pressure on their personal finances and need grocery stores to help them make their daily lives more manageable."
The product assortment in the BASALT will encompass a wide range of the basic groceries that do not require refrigeration or freezing.
These include pasta, oatmeal, toilet paper, diapers, toothpaste, long-life milk, flour and bread, as well as a basic selection of fruit and vegetables.
The format does not offer volume discounts, just fixed low prices every day, with more than 80% of the items costing less than DKK 20 (€2.69) each, or less.
Bank added, "We save on operations, logistics and energy, and with BASALT we pass the savings on to our customers. By significantly reducing our overheads, we can offer Danes the best prices on the market for the most basic groceries.
"Like everyone else, we hope that consumer prices will fall, but with BASALT we are giving Danes a very concrete weapon against inflation right now."
The first BASALT outlet will open on 11 October at Amager Landevej in Kastrup.
On the following day, two more stores will open in Viby Jylland and Prøvestenscentret in Helsingør.
The retailer plans to open a total of 10 BASALT store across Denmark in the run-up to Christmas.
The seven additional stores will open in Jutland, Funen and Zealand, as well as in the metropolitan area.
The rollout will test the appetite of Danes for a new form of retailing that is significantly cheaper than discount stores, Salling Group added.
© 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.