Norway Grocery Giants’ Fortunes Surge, Sparking Calls for Market Split
- The fortunes of Norway's leading grocery owners, Odd Reitan and Johan Johannson, increased by a combined 10,75 billion kroner over the last year, according to data from Kapital...
- Mímir Kristjánsson, a politician for the Rødt party, claims these wealth increases are a direct result of poor competition within the Norwegian grocery market.
- Kristjánsson asserts that the three largest chains face nearly zero risk while achieving high returns on invested capital.
The fortunes of Norway’s leading grocery owners, Odd Reitan and Johan Johannson, increased by a combined 10,75 billion kroner over the last year, according to data from Kapital magazine. Reitan, owner of Rema 1000, now holds a fortune of nearly 84 billion kroner, while Johannson, owner of Norgesgruppen, follows with a fortune approximately 20 billion kroner lower. Together, the two owners control assets totaling just under 150 billion kroner.
Rødt calls for breakup of grocery chains
Mímir Kristjánsson, a politician for the Rødt party, claims these wealth increases are a direct result of poor competition within the Norwegian grocery market. Kristjánsson argues that owning a large grocery chain is one of the most profitable ventures in Norway and suggests the market operates as an oligopoly dominated by Rema 1000, Norgesgruppen, and Coop.
Kristjánsson asserts that the three largest chains face nearly zero risk while achieving high returns on invested capital. He claims this system benefits the owners while customers, farmers, and checkout staff lose out, noting that customers have not seen lower food prices and farmers have not received more payment.
To address these issues, Kristjánsson advocates for aggressive regulatory measures, including the potential splitting up of Norgesgruppen, which operates chains such as Kiwi, Meny, Joker, and Spar.
It is a paradox in Norway, that it is almost impossible to live off making food as a farmer, while it is fully possible to become a multi-billionaire from selling food.
Mímir Kristjánsson
NHO disputes link between personal wealth and industry profit
Vegard Einan, managing director of NHO Service and Handel, told Nettavisen that using personal fortunes as a justification for regulation or splitting up companies is too simplistic. Einan argues that the wealth of individuals does not accurately reflect the profitability of the grocery industry as a whole.
According to Einan, the grocery sector generally operates on low margins. He states that the current values were built through long-term operations, efficient business practices, and prudent investments. He further noted that these companies provide tens of thousands of jobs across the country.
Einan describes the grocery industry as a leader in inclusion, providing career paths for people without higher education to move from entry-level positions into leadership roles.
Responses from grocery owners
Both Odd Reitan and Johan Johannson were given the opportunity to comment on the criticisms through their communications representatives. Neither owner wished to provide additional statements beyond the responses provided by NHO.
Einan has expressed a willingness to discuss how to ensure healthy competition with Rødt, provided the conversation also considers the protection of local merchants and existing jobs.