Hagar says Salling deal enables lower grocery prices

Bónus and Hagkaup stores can now offer lower prices following Hagar’s purchasing partnership with Danish retail company Salling, mbl.is reports.

About 600 products from Salling are now on the stores’ shelves. They are priced, on average, more than 15% lower than comparable products previously available. The selection is expected to grow to about 1,000 products shortly.

The products include brands such as Salling, ØKO, FRI, Princip and Budget.

Salling is Denmark’s largest grocery retailer

Salling Group operates more than 2,100 stores in Denmark, Germany, Poland and the Baltic states, according to the announcement. In Denmark, it runs chains including Netto, Føtex and Bilka. It also operates Netto elsewhere in Europe and Rimi in the Baltic states.

“It has always been our priority to achieve the best possible results in purchasing and thereby ensure the lowest possible prices for our customers,” Hagar chief executive Finnur Oddsson said.

He said products from Salling had entered the stores at prices more than 15% lower on average than comparable products, with the difference considerably greater in many cases. He also said the new products were often of higher quality than those they replaced.

According to Oddsson, the partnership has also expanded the selection in certain categories, including organic and environmentally certified products, which are generally cheaper than in other stores.

He said the agreement meant not only lower prices for Icelandic consumers, but also a wider selection of high quality products. He added that the new product range and pricing would increase competition in the grocery market and contribute to efforts to combat inflation.