Coop Norway

Coop Extra Case Study

The Norwegian retail market

Total value 2013: 153,5 BNOK (18 Billion Euro) Growth of 3,6%

Market Share % by competitor:

Market Share by Market Segment

Marketshare 2013 2012 % change

Norgesgruppen 39,3 38,5 0,8

Coop 22,7 23,3 -0,6

Rema 1000 23,1 22,2 0,9

ICA 11,1 12,3 -1,2

Bunnpris 3,6 3,7 -0,1

Segment (Nielsen)

2013 2012 % change Banners

Low price/ soft discount

59,7% 57,4% 2,3%

Hypermarket 6,7% 8,1% -1,4%

Convenience/ proximity shop

8,5% 9,2% -0,7%

Supermarket 25% 25,4% -0,4

CONVENIENCE

DISCOUNT BIG BOX

QUALITY

Positioning of Banners in Norway

Coop Extra–«Low price Supermarket»

• Store size: 800 - 2000 m2

• Core assortment: c.5,500 skus

Focus on Fresh and Bakery

• Food / Non-Food share: 90% / 10%

• EDLP

• Price Index 100 vs. Price leader

• Occasional promotions to excite

customers

• Maximum efficiency:

100% self service

Store layout / space

Used customer insight to increase promotional investment and performance

*sales impact based on unit uplift calculation, which is significant above control incremental units multiplied by 28 NOK (average selling price) includes VAT

** reduced number of coupons delivered to each member

COOP MARKET SHARE PEAKS IN LCM WEEKS

18.00%

19.00%

20.00%

21.00%

22.00%

23.00%

24.00%

25.00%

26.00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Personalised rewards to members (LCM) driving 1%+ sales uplift in Coop Extra

LCM RESULTS AVERAGE PER LCM

Loyal Members

Participation % 60%

Redemption % 40%

Total Mailing Sales Uplift* NOK 70m

0%

5%

10%

15%

20%

25%

30%

35%

40%

% OF LCM SALES UPLIFT ACROSS COOP BANNERS

Coop Extra has achieved LFL sales growth of 6%+, outperforming other discount chains

Thank you