Less than a month ago, Min Købmand in Ravnkilde also announced its closure.
However, they are far from the only ones, as grocery stores are gradually closing down in North Jutland.
Opens more than they close
According to Dagrofa, which i.a. owner of Menu, Spar and Min Købmand, the reality is not as bleak as it first appears.
– It is really sad for both employees and customers that SPAR Vestbjerg is now closing down, and we are sorry on their behalf. Unfortunately, it happens that grocery stores have to close, but fortunately we open more stores than we close these years.
– Divided between SPAR and Min Købmand, we have opened more than 20 stores this year, while we have only had to close a few, says Morten Vestberg, communications director at Dagrofa.
One of the explanations may be that Dagrofa jumps in when other chains close their stores. But if Coop can’t make it work, how can Dagrofa?
– We don’t have a magic formula, but we have a concept that works well. I will not comment on other people’s business models, but we stand strongly with Min Købmand in cities where there is only one convenience store, Brian Videbæk, property development director at Dagrofa, previously explained to Nordjyske.
He also points out that it may have something to do with the fact that the merchants themselves have a hand on the stove, and it means something for their wallets, how it goes.
– An important element is also that we have more than 200 yellow awards. These are prices that can be adjusted every week to match the discount stores. Although the merchants decide a lot themselves, they cannot screw up the yellow prices – here the customers must be sure that we match the others, says Brian Videbæk.
Another thing that can play a role is that many shops in the cities are run down, and the citizens themselves have to help find money for a renovation. Here, Dagrofa also steps in and helps with the renovation.
This has been the case in Lendum, where the former Dagli’ Brugsen became a Min Købmand, as they themselves have decided to leave the Coop.
Citizens are getting further and further to grocery stores
An estimate from Statistics Denmark shows that in 2022, 229,000 citizens had five kilometers or more to the nearest grocery store. In 2012, the number was 194,000.
This is not least due to the fact that the number of grocery stores in Denmark has fallen from 4,470 in 2012 to 3,960 in 2022.
According to Dagrofa, in recent years, up to 100 citizen-run smaller supermarkets have popped up outside the biggest cities, and this is due to citizen-run supermarkets.
– These stores typically open because the existing convenience store is in danger of closing or perhaps already closed. The citizens collectively collect funds – and a new store opens, explains the grocery giant.
Decrease in almost all municipalities
The number of shops has decreased in the vast majority of municipalities: The number of grocery stores has decreased in 81 of the country’s 98 municipalities from 2012 to 2022 and increased in 7.
The decrease is primarily due to fewer merchants and kiosks.
• More people have moved further to a grocery store: 229,000 people had more than 5 km for grocery shopping in 2022, which corresponds to 3.9 per cent. of the population. In 2012, the number was 194,000 and the proportion 3.5 per cent.
• People with a long way to go shopping live in the countryside: 89 per cent. of everyone with more than 5 km for shopping lived in rural areas or in villages with less than 500 inhabitants in 2022.
• The proportion with more than five kilometers to a shop is highest among the elderly: 5.2 per cent. of all 60-69-year-olds had more than five km to the nearest convenience store in 2022. Among the 70-79-year-olds, the proportion was 4.1 per cent, while the lowest proportion was among the 20-29-year-olds, who often live in the big cities.
• The majority with more than five km to the shop have a car: 89 per cent. of the 229,000 people with more than five km to grocery stores in 2022 had at least one car in the family. Of the 11 per cent who did not have a car, 95 per cent had no or limited access to public transport (less than four departures per hour within 500 metres).
Statistics Denmark
What is needed to maintain the stores?
– Our analyzes show that it is mostly people who are gray at the top who are prepared to shop in an out-of-date store. The young people and families with children come first when you have a modern store – and thus the store also becomes a natural meeting point in the city, Brian Videbæk has previously explained.
According to retail trade expert Bruno Christensen, the small grocery stores in North Jutland should not be able to cope at all, but some do anyway, and it requires something very special, he believes.
In theory, the inhabitants of the small towns should not be able to provide enough revenue.
– You can easily find merchants – and distributors – who can create a business regardless. This is solely due to their strong personality and relationship with customers, says Bruno Christensen.
However, there must still be a few thousand inhabitants, where the majority will shop in the store, but you can still expect that there will be more store closures in the future.
– It is a development that has been going on for many years, so, yes, we have to expect that. If the stores don’t have the right man/woman at the helm, then yes. In the smaller towns, it doesn’t take much to overturn the load, he states.
2024-11-17 13:39:00
#Closures #North #Jutland #grocery #stores #successful
What are Morten Vestberg’s thoughts on the challenges facing grocery stores in North Jutland?
**Interview with Morten Vestberg, Communications Director at Dagrofa**
**Editor:** Morten, thank you for joining us today. We’ve seen grocery stores like Min Købmand in Ravnkilde announce their closures recently. What’s your perspective on the grocery store landscape in North Jutland right now?
**Morten Vestberg:** Thank you for having me. It is indeed unfortunate when any store has to close, as it impacts not just the employees but the entire community. However, I want to emphasize that despite these closures, we are actually opening more stores than we are closing. This year alone, we’ve opened over 20 new locations across our brands, which include Menus, Spar, and Min Købmand.
**Editor:** That’s quite interesting! Why do you think your company is thriving while others like Coop seem to struggle?
**Morten Vestberg:** We don’t have a magic formula, but we have a concept that resonates well with our customers. One of the key elements is our model that allows local merchants to have a stake in their own stores. This local ownership creates a sense of responsibility and investment in the success of the business.
**Editor:** You mentioned pricing strategies in your statement. Could you elaborate on the yellow awards that you offer?
**Morten Vestberg:** Absolutely. We are proud to have over 200 yellow awards, which are adjustable weekly prices that compete with discount stores. It ensures our customers know they are getting competitive prices, which is crucial to drawing them in, especially in areas where choices are limited.
**Editor:** It sounds like you have a solid community approach. But in light of recent reports showing a decrease in grocery stores and citizens moving further away, do you see any challenges in maintaining your store openings?
**Morten Vestberg:** That’s a valid concern. The data shows that a significant number of people now have to travel more than five kilometers to their nearest grocery store, particularly in rural areas. However, we’ve also observed the rise of citizen-run supermarkets; when locals come together to fund new stores, we step in to assist with the renovations and ensure those new businesses can thrive.
**Editor:** Lastly, what is your outlook on the future of grocery shopping in North Jutland?
**Morten Vestberg:** I am cautiously optimistic. While there are challenges, especially with demographic shifts and closures, the community response with citizen-run stores gives me hope. As long as we can adapt and support these local initiatives, I believe we can maintain a robust grocery landscape in the region. Thank you for having me.
**Editor:** Thank you, Morten, for your insights. It’s great to hear about the proactive steps being taken in the community.
