« You don't want to be rocking this boat »
The Managing Director says that the store PRIS has met barrier barriers to markets such as threats of other stores with suppliers, stopping production and changed packaging so consumers cannot compare prices of the same product between stores.
The aim of PRIS is to improve the interests of households in the country with lowered food prices. The store is therefore challenging in the oblivion market of Iceland and the main characteristics of oblivion markets are few sellers.
This was stated by Gréta María Grétarsdóttir, Managing Director of PRIS, at an open meeting of the Association of Employers, held at the Grand Hotel today .
The meeting was entitled: Does the competition return to us competitive food prices?
Do not rock the boat
Gréta mentioned a few aspects of her speech that hinder access to the market for new stores.
She was mentioned as a huge entry barrier, the main challenge of Price's operators was to find a location for the first store.
Then she said it to get manufacturers and wholesaler to work with them also to be an obstacle, « we do not sit at the same table as the two giants on the market
For example, an Icelandic producer has said; « We have a predefined system to not distort calm in the market. »
Then a big wholesaler also said to her: « You don't want to be rocking this boat. »
Threats, stopped production and packaging changed
Gréta said market controlling parties own all the chains, they themselves import products, they themselves do not have their warehouses and they do not have the manufacturing companies that produce their products. Gréta said this very opaque.
Then she knows that the parties have stopped selling the store products because they have been threatened with less shelf space in the competitive camp.
It has also been stopped for the store and the arguments have been given that there has not been enough time to produce for two parties.
Good packaging has also been changed so that consumers cannot compare the prices of the same product between stores, « which is nothing but fraud with the customer ».
« This is no competition »
In light of the above obstacles to entering the market, Gréta asked in his speech what the situation was when two big companies dominate states, « this is no competition, this is oblivion ».
Large parties control prices and maximum their profits without landing in real price wars, that is – and has long been – the situation.
« When their production rises without a fall in consumers, it shows that increased profits are not to return to the public in the form of lower prices or better services, » said Gréta.
Healthy competition should be more pressure that forces companies to offer better prices and services, but it has not been seen in the market in recent quarters.
This was said that Gréta said the reason why small parties who fight to enter the market are important.
“By coming in with low costs, simple product selection and effective operations you can break up the stagnant market. It's not easy, but it's a lot of fun, « she said.
The store is not entering the market to have any virtue, but the prices of the products in a realistic way, with a healthy profit, « without having any super -profit ».
The operator's assessment is that, when the turnover, the aim is to operate the company with healthy profits.
