– Every shop Norway group gets open, is detrimental to competition. It is devastating for suppliers and consumers. It just says Rema manager Ole Robert Reitan Aftenposten.
He believes Norway Group is already too big and has too much power in the Norwegian grocery market. That Norway Group now getting buy 50 of ICA old shops, making him worried.
Read also: Coop allowed to buy Ica
– Intend for locally
– Yes, I am worried. Now the differences between Norway Group and the other even greater, he says and believes that the Competition Authority has thought of locally.
– I would rather have strong competition locally, than a dominant player nationally, says Reitan.
Rema not
He takes in account that he is the only one who does not get a piece of cake after that Coop had agreed to buy Ica Norway. Norway group receives 50 stores, while Bunnpris get over 43.
– It is very good that Bunnpris get bought 43 stores. It helps to strengthen the competition, says Reitan.
Bunnpris buy today goods Reitan, thus it also strengthens the Reitans bargaining power against suppliers.
– I think it is strange that Competition Authority does not understand that it had been better if Coop had to keep the 50 stores than Norway group gets buy them.
– Second best
Director of the Consumer Council, Randi Flesland, says today outcomes is the “second-best solution.”
– We would have preferred that there were four chains. When it does not go, this is the next best solution. Now we only wish Coop luck with its expanded portfolio. It is important that Coop success, says Flesland
She highlights positive that it will now be three operators which are all National , while Coop and Ica until now have had their centers of gravity in different parts of the country.
Thought Cross
She says she is confident that the Competition Authority has made a reasonable assessment when they apply the number of stores that must be sold.
– What is puzzling is that Norway Group, which is so dominant, getting buy about half of the stores to be sold.
Taking it as a compliment
– You are the only one who has not received any of the pie in this round, Reitan. What do you think about it?
– I note that Coop is terrified to sell some stores to us. I take as a compliment, says Rema boss who has seen Coop as its archrival through the years.
Las Vegas trip
It went so far that he promised all store managers a trip to Las Vegas when they were bigger than Coop. It was the a few months, but then bought Coop Ica and shot past again. But it was Las Vegas trip anyway.
Now Coop a market share of over 30 percent, while Norway Group comes to round 40 percent.
Providers concerned
– We are very concerned that we go from four to three suppliers, says CEO Helge Hasselgård in Dagligvareleverandørenes Association. He organizes many of its suppliers in the grocery industry.
He believes that when it is now being fewer players to buy goods, the committee and the diversity disappear. It will go out of the suppliers and consumers.
Calls for national measures
– We fear that the three are larger and thus become narrower competition, says Hasselgård.
In addition he worries himself that Norway Group rounds 40 percent market share.
– We are very worried. Now is the time that the Competition Authority looks at the consequences in the national market and not just in the local markets. That Norway group received buy stores now, was remedial measures locally. Now the politicians need the pitch and see what they can do nationally, he said.
Law on trade practices
He will have in place a law on good trade practice and Trade Supervision as the first step. Society his will also look into the details of the Authority’s decision to assess the impact this may have in the national market.
Also Flesland is concerned that the Government now promotes law on bargain Conduct for Parliament. Since the Committee that school study such a law was completed, the proposal has been shelved.
– With only three actors, it becomes very important that the market works in a good way. We are therefore concerned that the government picks up the bill and that the Parliament approves it.
– Do not rain on market
Norway Group told Aftenposten that they have not counted on the new market shares. Probably this is stores with an average turnover of 20 million spread out over the country.
– We are well prepared and ready to take over the stores. We will do these stores to good Norway Group stores, says communications director Per Roskifte in Norway Group.
He would not comment on how much they paid for the stores.
– How big will market their now?
– We have not been able to count on, says Roskifte.
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