High prices at Icelandic discount shops

Discount shops are doing well in Iceland. Bonus, a supermarket chain of this category, has the largest market share. This chain, featuring a symbolic piggy bank in its logo, however, is not the only discount shop. Kronan is another one. Hypermarket Hagkaup also has a place on the market, just like specialist, small supermarket chains like Vidir. Additionally, there are also chains that can only be found outside of the capital. The Icelandic supermarkets are as versatile as the country itself. During a visit to Reykjavik we visited a number of supermarkets. 

Vidir is a small chain with just three branches. Two of the three shops are located in the Icelandic capital, the third one in a village next to Reykjavik. The chain focuses on fresh fruits and vegetables. Importers advise to definitely have a look at this chain. Although we enter the shop at the end of the day, the fresh produce shelves are indeed well-stocked. However, the quality of the products is remarkable. White mushrooms turning brown, leaking punnets of strawberries and wrinkly bell peppers. The presentation of the fruits and vegetables, however, is nice. 

In the indoor shopping centre Kringlan in Reykjavik both a Hagkaup and a Bonus can be found. Although the shops appear to be competitors, both formulas are owned by Hagar. This company owns a number of supermarkets and wholesaler’s in Iceland, Sweden and Denmark. 

At the spacious Hagkaup products are arranged nicely on the shelves. Baskets, among other things, are used for the presentation. Besides, there is a remarkable amount of organic produce for sale, right next to conventional produce. The range is wide, and also has room for exotics such as pitahaya, kumquats and chayote. There is also a lot of choice between Icelandic and imported products. For example, both imported and domestically grown strawberries are side by side on the shelves.

Chocolate and whipped cream for sale next to the strawberries and Doritos next to fresh guacamole means we are talking about cross selling. Halves and quarters of melon and cabbage are an example of the convenience market, although they also sell vegetable mixes. High point of the convenience market is the salad bar, allowing customers to create their own salads. 

Although discount shop Bonus sells Chiquita bananas, the range of fruits and vegetables for sale is more limited than at Hagkaup. Presentation is also less excessive. Fresh produce is in a large ‘walk in refrigerator.’ The supply is short, but the products for sale are comparable to Hagkaup’s range. And although the presentation is not great, Bonus also cross sells: salad dressings are next to cut lettuce. 

We visit a Kronan in Hafnarfjordur bordering on Reykjavik. This is also a discount shop, but clearly arranged more spaciously than the Bonus in the shopping centre. Products are on the shelves in large volumes, and here, too, is room for melons and pineapples. Part of the shelves look nice, but the cold room, however, looks dark and messy. The range is broad, with room for exotics and organic products. The discount shop is anticipating the convenience trend with cut fruits and vegetables.