In October, Denmark's largest supermarket retailer Salling Group (Netto, Bilka, Føtex) launched a new hard discount chain under the name of Basalt. The company says the chain is an answer to the sky-high inflation in the country. The stores will sell basic everyday goods and it promises to be 15% cheaper than other discount chains.
Merchandising is very basic. Most products are placed on pallets in the store or directly on the shelf in outer packaging. Basalt’s product range is limited to some 800 SKUs and it does not sell refrigerated or frozen goods. The range includes common basic goods such as pasta, oatmeal, toilet paper, diapers, toothpaste, shelf-stable milk, flour and bread, as well as a basic selection of fruit and vegetables. There are no volume discounts, only fixed low prices every day, and more than 80% of the items will cost less than DKK 20 (€ 2,70) per piece and half will cost DKK 10 or less. To cut costs, the stores will not be open in the evening and the stores have no freezer or refrigerated cabinets. Ten of the stores will open across the country before Christmas.