Bilka, Føtex and Netto stores are setting price ceilings on food products in anticipation of inflation in the coming period.
Despite the Danish Ministry of Finance's forecast that inflation for 2022 will slightly exceed 5%, there are expectations that food prices will double.
Within a few weeks, Salling Group will set a price ceiling for at least 100 everyday essentials in Netto stores and 200 items in the Bilka and Føtex chain stores.
Therefore, the prices of basic commodities such as certain types of oatmeal, milk, and meat will not increase starting from the first of next month for a period of 150 days, regardless of how much inflation might otherwise rise. This is expected to cost the parent company millions of Danish kroner. According to the parent company's CEO, Per Bank, milk is one of the products that has already seen price increases. Milk alone will cost them up to ten million kroner, making it a truly expensive commodity, he stated. Food prices are expected to rise by 101 TP3T.
In the event of an ”unexpected” drop in prices during that period, the prices of the selected 100-200 products will be monitored.
The price cap will initially be in place until October 28th, after which Salling Group will assess whether to extend the period. According to the CEO, it is important to give Salling Group customers some reassurance about prices. He added, “They are chasing deals more than usual because inflation is affecting their economy. Customers are buying cheaper goods, and this of course means something for sales volume. The whole market is declining, so despite the price increases, there is no growth in the Danish grocery market.”.
(Source: TV2)
