Denmark Dagrofa Matches Discounters
Dagrofa’s Meny supermarkets have introduced a new discounter price matching scheme, called DiscountMatch, reports Danish retail magazine Dansk Handelsblad. The fresh food focussed banner of Denmark’s third largest grocer will actively match the prices of 500 basic, permanent SKUs to those of Netto and Rema 1000.
If the everyday price of a branded or comparative private label item is found to be lower at one of the two leading discounters, Meny will match it within a period of three days. It remains unclear if the range will be merchandised in a dedicated section in the stores.
Daniel Johansson (Retail Analyst)
Opinion Regaining Lost Discount Shoppers
Dagrofa recently gave up on its own discount chain Kiwi and with this new scheme is clearly seeking to regain part of the lost turnover within the low-price segment. Previously the banner has focussed its communication on its wide assortment of fresh groceries and expert staff. Now it can highlight its EDLP range without worrying about cannibalising any discount banner sales.
Essentially, this discount matching strategy has been there all along, just not as clearly communicated. Back in 2015 when the Meny banner was conceived, 1,000 EDLP items were part of the nationwide concept. In the past, it was split between the ranges “Meny Fast Lavpris” (Meny Everyday Low Price) for brands and “Hyldens billigste” (Cheapest on display) featuring Dagrofa’s First Price economy private label.
In Meny’s most recent flyer, 45 of the 500 DiscountMatch SKUs are featured and almost all of them are under the retailer’s First Price economy label. We can therefore expect many of the remaining products to also belong to this range. These have always promised to match discounter prices so what we’re seeing here is more of a change in marketing than a change in assortment strategy.
For sure, the stunt is delivered with higher credibility and clarity than in the past and should improve Meny’s price perception without compromising its reputation for quality. At the same time, we feel it could have been further improved by matching all the discounters rather than just two; and also by offering a direct price reduction at the till if the product is found cheaper elsewhere rather than the delayed price matching.