Supermarket giant Coop wants to challenge convenience store market but main competitor remains unfazed

Supermarket chain operator Coop is set to take on the 24-hour convenience store concept through the opening of two new locations by the end of the year, reports Business.dk.

Coop, which owns Irma, Kvickly, SuperBrugsen and Fakta supermarkets, is aiming to lure consumers away from future competitors such as 7-Eleven, petrol stations and mostly immigrant-run greengrocers. The new concept will seek to offer a healthier yet cheaper alternative.

The first of Coop’s two test stores will be located on Falconer Allé in Copenhagen, where an Irma City store currently sits. And it’s just a few meters away from a 7-Eleven.

Hildegunn Lyngfjell, Coop’s head of development, said the Falkoner Allé location is scheduled to open before July, but she would not comment further on the store’s planned opening times or selection of items.

But while many industry experts are predicting that consumers will welcome Coop’s new concept, 7-Eleven isn’t afraid of the competition.

‘Basically, it sounds exciting and I believe that it’s good to have some competition,’ said Jesper Østergaard, chief executive for 7-Eleven Denmark. ‘We’re following the development with excitement and we’ll certainly be among the first customers in the new stores to see what it’s all about.’

Østergaard, however, does not expect the new stores will trigger an outright price war in the convenience store industry.

‘It’s obvious that there will be some categories where you’ll find some products that are lower in price than ours. But I don’t think that our products are exorbitant in price, and Coop will probably find that they won’t be able to keep selling products that cheaply,’ said Østergaard, pointing to the additional costs in operating 24-hour stores.

Retail expert Bruno Christensen praised Coop's idea of a price-friendly convenience store, saying there was a need for the market.

‘There certainly seems to be room for one more player in the market than there is today,’ he said. ‘Consumers are leaning more toward convenience, and that gap in the market has until now been filled by discount stores that end up serving as local residents’ convenience stores.’