Norway: retailers compete on loyalty

Date : 05 January 2017

REMA 1000, discount banner of Norway’s Reitangruppen has launched a new loyalty programme, Æ, today (5th January). Competitors NorgesGruppen and Coop Norge were quick to respond, with loyalty scheme enhancements of their own.

Benefits: 10% off frequent purchases & fresh produce

  • 10% discount on ten frequently purchased items
  • 10% discount on fresh produce
  • Dedicated app, Æ

Commenting on the development, CEO Ole Robert Reitan said, ‘the customer is our top boss, and shall receive personal price cuts on goods they buy most. Not the goods supermarket chains want to sell’.

Competition responds with enhanced offers

Key competitors NorgesGruppen and Coop Norge already offer their own loyalty programmes and have already responded to REMA 1000's activity.

NorgesGruppen’s KIWI+ loyalty scheme was introduced a year ago and offered shoppers a 7.5% discount on fresh produce in its KIWI discount stores (9.5% on event days). KIWI has now doubled this discount to 15%.

Coop Norge has also responded by offering an 11% discount on fresh produce to loyalty card holders in its Coop Extra stores, while its other banners will use new promotional campaigns. Both retailers offer other benefits as part of their respective loyalty schemes.

So what do we think?

Although REMA 1000 has now entered the competitive loyalty scheme arena in Norway, the competition has been quick to respond. We wait to see with interest how these loyalty schemes continue to evolve.

IGD identified health at the heart of the store as one of the top five global grocery trends for 2016 and this is set to play a continuing important role in retailer strategies as they look to attract shoppers by incentivising them to buy healthier products through price discounts, promotions and/or rewards.

While other retailers are adapting their loyalty schemes to respond, REMA 1000 has differentiated itself by offering a 10% discount off ten frequently purchased items for loyal shoppers.

Elsewhere in the world other similar loyalty schemes have launched in recent years, moving away from points collection. For example, in the UK, the myWaitrose loyalty scheme allows shoppers to select ten products from hundreds available and save 20% on them every time they shop.

This article was written by Harriet Cohen, Senior Retail Analyst in IGD's international research team. Harriet is responsible for shaping IGD's research into Scandinavia; as well as contributing to IGD's broader European research programme. She also conducts research into price, promotions & loyalty. Harriet regularly travels to markets in the region, visiting stores and engaging with retailers and manufacturers. She brings five years of experience working for leading UK retailers to IGD. To learn more about how IGD's research can benefit your business further, please get in touch.

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