Norwegian retailer REMA 1000 has locked the prices of over 1,000 products until Easter as it seeks to ease the pressure on shoppers after an expensive Christmas.
Many people find it difficult to start the new year on a strong financial footing, while January is also generally known for many things becoming more expensive, the retailer said in a statement.
REMA 1000 stores across Norway plan to freeze the prices of various products, ranging from coffee beans to boiled ham.
Pia Mellbye, sales and marketing director at REMA 1000, added, "We are now freezing the prices of more than 1,000 items. This gives customers predictability and security at a time when this is particularly important."
Pricing Strategy
REMA 1000 seeks to offer groceries at the lowest prices in Norway and its business model is based on selling large volumes at low prices.
Mellbye explained, "We buy in bulk, cut prices and take it straight to the customer with lower prices on the shelf."
Last summer, the company abolished the so-called 'price window', which involved conducting negotiations with suppliers and price adjustments only twice a year.
"Now we negotiate throughout the year, and when we receive price cuts, this is immediately passed on to our customers in the form of lower prices," she said.
Christmas Savings
Before Christmas, the retail group cut prices on a large selection of Christmas products by half the VAT.
"It's the final total on the till receipt that counts," Mellbye added. "The Christmas price cut was well received. We are now following that up with a price freeze on over 1,000 items from the first day of the year, which we believe and hope will meet customers' expectations."
