Grocery Giants: Kiwi, Rema 1000, and Coop Take Property Control

Major grocery chains in Norway are tightening their grip on the retail property market, effectively controlling store locations and future expansion sites. According to the latest report from the Norwegian Competition Authority (Konkurransetilsynet), this concentration of property ownership creates significant barriers to entry for new competitors, potentially leading to higher prices and a restricted selection for consumers.

How grocery chains control local markets

Large retail groups are increasingly securing long-term influence over prime real estate, often before residential areas are even developed. According to industry expert Bjørn Nygaard, these chains purchase development land to ensure no competitors can gain a foothold in emerging neighborhoods. Data from the Competition Authority highlights the scale of this strategy: Norgesgruppen currently holds ownership interests in 901 property companies, followed by Coop with 459 and the Reitan sphere with 360.

Why do chains use 40-year lease agreements?

Property control is maintained through unusually long-term lease agreements, some spanning up to 40 years. While standard commercial leases in other sectors typically run for five years, these extended contracts lock in specific locations for decades. According to the Competition Authority’s review of 307 lease agreements, roughly 33 percent include options that guarantee control over premises for over 40 years, while 15 percent contain exclusivity clauses that prevent other retailers from operating in the same building.

How do the major chains respond to the criticism?

The major grocery players argue that their real estate investments are essential for maintaining a stable, nationwide supply chain. Norgesgruppen’s communication director, Stein Rømmerud, states that retail requires massive, long-term capital investment in logistics and property to ensure stores remain viable where people live. Similarly, Reitan-owned Rema 1000 characterizes these actions as “legitimate business operations” that benefit customers by providing better-equipped stores. Coop, however, positions itself differently, citing its structure as 56 independent cooperatives, which they claim limits their ability to engage in the same scale of aggressive property development as their competitors.

Is the current competition law sufficient?

Despite the findings, the Norwegian Competition Authority does not currently plan to overhaul the legal framework. According to department head Beate Berrefjord, existing laws are sufficient because long-term leases can be scrutinized as mergers if they are found to restrict competition. The government has extended the duty for grocery chains to report all property acquisitions—even small ones—to the authorities through 2028 to maintain oversight of this concentrated market.

Frequently Asked Questions

• Why does owning property matter for grocery prices?
  
  When a chain owns both the store and the building, it gains the ability to redistribute costs, potentially making it harder for independent competitors to match prices or secure affordable rent.
• Are negative servitudes still a problem?
  
  The use of negative servitudes, which prevented landlords from renting to competing chains, has declined significantly following a 2024 ban. Most remaining instances were concentrated in Trondheim.
• Can new competitors still enter the market?
  
  Entry remains difficult because the most desirable locations are often already tied up by long-term leases or ownership, forcing new entrants to find less optimal sites.

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