Danish retailer Salling Group is expanding into Iceland through a new strategic partnership with regional grocery group Hagar.
Effective immediately, Hagar will purchase and retail several of Salling Group’s private-label brands, including Salling, Salling Princip and Salling Øko.
This collaboration marks Salling Group’s first venture into international wholesale.
Hagar operates a significant network of 53 grocery stores and 65 petrol stations across Iceland and the Faroe Islands, all of which will carry selected Salling Group products.
The initial range is already available in Icelandic stores such as Bónus and Hagkaup, with plans to expand the offering to over 1,000 items within the coming months.
Synergy And Scale
Anders Hagh, CEO of Salling Group, commented, “The collaboration [with Hagar] will strengthen our core business, which is a key priority in our Aspire 28 strategy.
“The strategic collaboration with Hagar is not merely a commercial agreement – it is an important step in building a Nordic scale-up model.
“By introducing more markets to the same products and brands, we improve our purchasing position, which ultimately benefits our customers.
“This strengthens our competitiveness across the Nordic region and supports our ambition to be the leading grocery player in the Nordics.”
A Turning Point
Finnur Oddsson, CEO of Hagar, added, “Salling Group’s own brands are known for their high quality and competitive pricing, which have always been priorities for us.
“This collaboration is the largest of its kind for us in many years and marks a turning point for the grocery trade in Iceland.
“Salling Group holds a clear competitive advantage in the Danish market regarding size, purchasing power, and range.
“Through this partnership, we gain access to a diverse product range with broad European recognition, directly benefitting our Icelandic customers.”