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Danish supermarket chains introduce price limits on selected products

Danish company Salling, which owns three supermarket chains, will place a limit on the price of selected products until later this year in response to inflation.

føtex supermarket
Selected products at Føtex, Bilka and Netto stores will be given price freezes until later this year. File photo: Liselotte Sabroe/Ritzau Scanpix

The high current prices of energy and many daily items for customers, caused by inflation, are behind Salling’s decision to introduce a price limit on some of its products, the company said in a statement on Tuesday.

Salling owns the Netto, Bilka and Føtex supermarket chains in Denmark. The prize freezes will apply at all three.

The limits, which will be in place until October, will be applied to “basic daily and food items”, according to Salling. Netto stores will see price limits applied to 100 products, while the larger Føtex and Bilka stores will have 200 products included.

Own-brand Salling products are likely to form the bulk of the lists, but the specific products were not named by the company.

The prices of the selected products “will not increase before October 28th despite ongoing, increasing inflation,” Salling said.

Although Salling expects inflation to continue, it said it wanted to give customers the option of preventing their spending on groceries from increasing by enabling them to choose products that have not gone up in price.

“We will make it easy for customers to navigate the products by communicationg prices clearly in our stores using signs and markings on shelves,” Salling CEO Per Bank said in the statement.

The move was described by Salling in the statement as an “investment” in light of expected higher costs at suppliers.

“It is just a year since Danes bought luxury items and flocked to supermarkets as a result of corona lockdowns and with extra holiday money in their pockets. Today, customers navigate by special offers and own brands as an alternative to name brands in Salling’s shops and stores,” the company said.

The company will announce on November 1st whether it will extend the limitation period, it said.

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PROPERTY

Denmark opposition wants tax deductions for first-time home buyers 

Denmark’s Liberal (Venstre) party, the largest opposition party, says it wants to make home ownership more affordable in Denmark. 

Denmark opposition wants tax deductions for first-time home buyers 

Under the proposal, first-time home buyers could be given tax deductions on savings set aside for buying a home, newspaper Berlingske reports.

Specifically, would-be homeowners could receive a 20 percent tax reduction on up to 50,000 kroner per year for five years, according to the Liberal plan, which the party is set to present on Monday.

As such, a couple which together saved 500,000 kroner over a five-year period would get a benefit of 100,000 kroner under the proposed tax deduction.

In addition to the tax plan, the Liberals want to spend 100 million kroner yearly building housing, with 122,000 new homes for buyers planned over the next ten years. Municipalities would be given incentives to build more homes with shorter processing times under the scheme.

The Liberals estimate that the savings scheme for first-time buyers would be used by around 50,000 people per year and therefore cost around 1 billion kroner annually.

READ MORE: Danish apartment sales cool to eight-year low  

A reform of job centres and municipal employment services, which the Liberals will also present in the near future, would help to save money which could be spent on the home ownership plan, party leader Jakob Ellemann-Jenses also said in the Berlingske interview.

The Liberals party count with the support of the Conservatives and the Danish People’s Party, although the former party is reported to favour broader tax cuts.

The Social Democratic government opposes the plan. Housing minister Christian Rabjerg Madsen told Berlingske that the proposal would push up house prices in larger cities, forcing people on normal incomes to move away from larger population centres.

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