There are many supermarkets in Finland, but the two largest operators are Kesko and Cooperative Outlet. S group Germany’s Lidl is starting to open stores.
Spar Group wants to take on Finland’s established supermarkets
There is a new competitor on the block, discount retailer Tokmanni, which has secured exclusive rights to operate the Spar brand in Finland.
Kjösti Kakkönen, art collector and successful businessman, founder of the growing Kakkönen Group, is delighted with the movement and believes his company can offer fresh food at lower prices. At the same time, we believe it will ensure that Finnish farmers receive a better deal.
Commenting on the decision to get involved with Spur, as reported on YLE, the charismatic Kakkunen fought back by stating: “Currently, Finnish grocery stores are losing customers. Retail and cooperative stores are doing well, but farmers are not getting their fair share.”
It’s one thing to tempt a market leader and promise price cuts, but he’s not sure if Tokumanni’s stores will be converted to just 20, especially in the initial launch, compared to the 1,000-plus of its two biggest competitors. The reality could be quite different, as the company is trying to compete with other stores. Super store.
With so few stores to open initially and uncertainty about which stores will offer which fresh produce, it’s highly unlikely that Spar’s offer will actually be more than a bit of an incentive for major players. It seems so.
New Spar grocery store starts small and learns how to capture customers from Finland’s established supermarkets
Even if some foods are cheaper, unless the new Spar offers a very wide range of products, consumers are likely to gravitate towards the store that offers the greatest selection, even if it costs a little more.
Of course, there could be a smart strategy to launch with a small number of grocery stores. By doing so, Kakkōnen Group can learn what works and what doesn’t without making costly changes, especially to its large number of newly opened stores. If some of the 241 Tokmanni stores are not suitable for conversion to Spar.
Time will tell whether Finland’s Spar Group can challenge the established supermarkets Or whether that fresh produce will eventually become part of the food waste problem.
