Food prices: – What they call a price war in Norway, I would rather call price diplomacy
– Yes, of course they are too high.
That is Jan Tønnesen’s answer to questions about what he thinks about Norwegian food prices.
He is one of many Norwegians who shop at the Nordbysenteret just over the Swedish border at Christmas time.
Tønnesen is not alone in thinking that food prices are too high now. As many as 70 percent of Norwegians believe that food prices are high, according to a survey carried out by InFact on behalf of the Nation.
This is an increase of 30 percentage points compared to when the Nation had a similar barometer in 2019.
80,000 square meters of shopping
The Nordby shopping center is located right at the cradle of cross-border trade at Svinesund. Since opening in 2004, the center has become one of Scandinavia’s largest.
In the course of a year, close to 7 million people visit the 110 shops that are spread over the centre’s 80,000 square metres.
Norwegian Ole Jørgen Lind is store manager at Maximat Nordby. He believes that traffic is now greater than it was before the pandemic.
– We noticed a big change of pace in July after the grocery chains raised their prices, he says.
Lind believes the increase in traffic is largely due to higher food prices at home in Norway.
– Both goods and services have gone up in price. Food prices are something you can control yourself by shopping in Sweden, says Lind
Price and war
Since January 2022, there has been a sharp increase in food prices across Europe, mainly as a result of the war in Ukraine.
This has also made itself felt in Sweden, confirms Lind. But that doesn’t stop people from crossing the border.
– What is important is the price difference between Norway and Sweden. It has remained, and perhaps become even bigger. We expect it to be 45 percent. Simply put, it is half the price in Sweden, explains Lind.
Although at Christmas there is often a so-called price war between grocery stores in Norway, Lind does not fear that it will affect the traffic over the Svinesund bridge.
– What they call a price war in Norway, I would rather call price diplomacy. There is perhaps a difference of 50 øre in a shopping cart of NOK 3,000, says Lind.
– At the lowest prices, you can also see that there are often empty shelves. I think that annoys the customers a bit, he adds.
Stick meat at NOK 99 per kilo
There are many who also choose to handle traditional Christmas goods such as ribs in Sweden, according to the store manager.
– Our customers come by car, so when there is inclement weather and closed roads, we notice it. Otherwise, we have had a fantastic run-up to Christmas, says Lind.
At Nordbysenteret they have, among other things, ribs and skewered meat at far lower prices than what you get in Norway. The pork chops at NOK 99 a kilo are from Norway, while the ribs mainly come from Sweden, Denmark and Germany, he explains.
Although the prices are lower in Sweden, the quality is not worse, says Lind.
– I am Norwegian and my grandparents worked with pigs. Here in the store, we go through everything, regardless of where it comes from, and use what maintains the right quality. We have to compete with the quality of Norwegian ribs, so this is at least as good quality, he believes.
– It is also the case that Swedes want Swedish meat, Norwegians want Norwegian meat and Danes want Danish meat. All of these think this is the best meat, but I think it takes a lot to taste any difference.
– Take it as a trip
Among those who choose to do Christmas shopping in Sweden, we find Svein Hornnes. He and his family have made the trip all the way from Kristiansand.
– The food is cheap, but the journey costs a bit, of course. We take it as a trip for the whole family, he says.
Hornnes says that they have largely taken the Christmas trade in Sweden every year, except during the pandemic.
– It is mostly the wife who controls where the ribs come from, he says with a smile.
– Not just economics
Store manager Lind believes that it is not just economics that is the reason people come to Nordby. The selection in the store is also an important factor, he believes
– We have, among other things, Kobe meat for NOK 2,000 a kilo and French Roquefort. Not that most of it works, but these are goods that are not as easy to find in Norway.
– Do you think fewer people would shop in Sweden if there were less customs protection on agricultural products?
– In Norway, they have chosen a more protectionist agriculture. It is clear that it affects the prices.