Danish Retail Giant Dagrofa Expands Supply Chain to KNI’s Pilersuisoq Grocery Stores
At the close of this year, Dagrofa, the prominent Danish retail powerhouse, will take a significant step forward by becoming the main supplier for KNI’s grocery chain, Pilersuisoq.
“We’ve secured a substantial agreement with Dagrofa,” announced Jeppe Jensen, managing director of KNI, during an interview with Sermitsiaq.
Starting November 1, KNI will transition from Arctic Import/REMA 1000 to Dagrofa, marking a pivotal shift in their procurement of daily necessities—primarily food items. The newly inked three-year trade agreement will see Dagrofa introduce its private label brands, Gestus and First Price, into Pilersuisoq’s inventory. By the end of 2026, these brands, already favorites in MENY stores across Denmark and various retail outlets in the Baltic region, will become accessible to customers in Greenland.
Pricing Strategy and Customer Impact
When asked whether this change would lead to lower grocery prices for Pilersuisoq customers, Jensen replied, “Given the current trends in the global market, our focus is more about avoiding significant price hikes. This was a key factor in our decision to seek new supplier arrangements.”
“Our goal remains to keep prices as affordable as possible, a commitment strongly supported by this new agreement with Dagrofa,” he added.
A Widespread Reach
Currently, Arctic Import serves as the principal supplier of REMA 1000 products to KNI’s stores under an agreement set to expire after five years. Last October, KNI opened tenders for potential suppliers, including Dagrofa and Arctic Import/REMA 1000. Dagrofa’s successful bid means they will be supplying goods to Pilersuisoq’s locations across 53 settlements, including 11 cities like Nanortalik, Narsaq, Paamiut, and Aasiaat, where Pilersuisoq competes with businesses like Brugseni and Pisiffik.
A Range Beyond Food
Beyond just food items, Dagrofa’s deliveries will encompass a wide array of non-food products, including personal care and household essentials such as cleaning supplies, napkins, and brushes.
“With this new agreement, we plan to stock items that our customers have shown a clear demand for. Currently, branded goods account for the majority of our sales, so alongside Gestus and First Price, we will offer a diverse range of well-known brands,” Jensen explained.
It’s worth noting that Dagrofa already partners with Pisiffik, indicating their growing footprint in the region. Simultaneously, KNI has agreed to continue its collaboration with Arctic Import, specifically for the procurement of beverages, including beer, water, wine, and spirits. This separate agreement commenced on May 1 and will last for 18 months.
When asked if the new deal with Dagrofa offers better terms than the expiring agreement with Arctic Import/REMA 1000, Jensen stated, “In recent years, we’ve witnessed considerable increases in food prices. We believe this arrangement with Dagrofa presents KNI with the most cost-effective, reliable, and efficient service.”