Coop Norge chief Philipp Engedal stated in an interview with Nettavisen that launching a new grocery competitor in Norway will prove exceptionally difficult due to high store density, fierce market competition, and an ongoing shift toward online shopping.
Consumer habits shift toward rapid delivery services across Norway
Consumer shopping habits are changing rapidly across Norway. While traditional physical stores continue to grow primarily due to price inflation, online grocery shopping and rapid delivery services are expanding at a much faster pace, Nettavisen reported. Quick commerce—defined as rapid home delivery within an hour from local stores or restaurants—is surging by 300 to 400 percent annually. Traditional online grocery shopping grows at 12 to 13 percent, whereas physical store revenue rises by roughly three percent. Engedal noted that online groceries will inevitably capture a larger market share, with success depending entirely on timing and profitability.
Physical Stores Must Shrink to Cut Costs
The expansion of online retail and quick delivery will directly alter physical store infrastructure. Engedal explained that maintaining large retail spaces becomes economically unviable when sales shift to digital channels. Because Norway features a long, scattered geography, the overall store network will largely remain intact, but individual branches must reduce their square footage to match lower physical revenue and manage rent costs effectively. Discount stores continue to lead growth figures, while neighborhood shops experience a steeper decline in customer traffic.
The Challenges of Market Entry
Establishing a new physical grocery chain in Norway remains an uphill battle for any newcomer. Norway supports nearly double the number of grocery stores as Sweden despite having a significantly smaller population. Engedal pointed out that the best commercial locations are already occupied by established players like Kiwi, Rema 1000, and Coop, rendering new physical store rollouts highly impractical. The intense market pressure became clear when Rema 1000 announced plans to cut 130 jobs to reduce overhead expenses.
Quick commerce expands much faster than traditional stores in Norway
How fast is quick commerce growing in Norway compared to traditional stores?
Quick commerce is expanding at an annual rate of 300 to 400 percent, according to Coop figures reported by Nettavisen. In contrast, traditional online grocery delivery grows by 12 to 13 percent annually, while physical store revenue increases by about three percent, driven entirely by price inflation.
What market share does Oda hold in Oslo?
Online grocer Oda commands a market share of approximately seven percent in Oslo, despite holding around 1.5 percent nationally, Nettavisen reported.
How does Coop’s customer dividend vary by region?
Coop pays an annual customer dividend ranging from one percent on the Østlandet region to three percent in Trøndelag and five percent in Tromsø, reflecting varying levels of local market competition.
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