Nearly 100 million Norwegian kroner in public funds are being allocated to support rural grocery stores across the country, a move prompted by the increasing closure of vital community hubs. While large retail chains like Coop and Norgesgruppen are receiving these funds,the support is intended to ensure access to essential goods and services in areas where stores are operating at a loss and facing closure. Nettavisen’s reporting focuses on the story of Coop Marked Ose, a small store in Setesdalen that was saved from shuttering thanks to the Merkur program and innovative approaches to local commerce.
Nearly 100 million Norwegian kroner in public funds are being allocated to grocery stores owned by the country’s largest food retailers, a move that has raised some eyebrows.
Many assumed that companies like Coop and Norgesgruppen, the owner of Kiwi, had sufficient financial resources.
However, the reality is that numerous rural stores would have closed without the additional support provided through the national budget.
As Nettavisen reports, stores like Joker, Spar, and Coop locations in rural areas are steadily closing.
A Turnaround in Ose
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Coop Marked Ose in Setesdalen was facing imminent closure. A recommendation for shutdown had already been drafted, but then things changed.
We spoke with store manager Vigdis Beisland by phone, as she simultaneously assisted customers and recounted the story of the store’s revival.
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The sound of scanning items occasionally breaks through the phone line. In the coffee corner, a group of local men are enjoying their morning gathering.
“They’ve been sitting there since nine o’clock. Ensuring there’s coffee in the coffee corner is one of the most important things in the morning,” Beisland says.
COMMUNITY HUB: Vigdis Beisland (right) and Live Uleberg ensure shelves are stocked and, importantly, that the coffee corner has coffee.
Photo: Coop
It was a bleak winter morning in Ose, but that hadn’t always been the case. The store had been slated for closure.
“Three years ago, Coop started talking about closing the store, because it wasn’t viable. It was operating at a slight loss,” Beisland explains.
The Merkur Program to the Rescue
The solution was to seek support through the Merkur program. First, solar panels were installed on the roof, and then the store was digitized to allow customers 24/7 access. The municipality covered a quarter of the costs, with the remainder funded by Merkur. This program highlights the growing trend of leveraging technology to sustain rural economies.
“What would have happened without the support? Would the store have closed?”
“Yes, absolutely. The store had significant deficits, and the message was that they would close it.”
About the Merkur Program
The Merkur program is a support scheme for rural stores: It’s a government initiative designed to ensure that people in rural areas have access to a local store and good services where they live. It operates on behalf of the Ministry of Local Government and Regional Development.
More than just milk and bread: The program helps stores evolve into “multifunctional service centers.” This often means the store also functions as a post office, library branch, pharmacy outlet, or social meeting place with a coffee corner.
Competence and funding: Merkur provides both financial support for investments (such as new refrigerated displays or fuel systems) and training for store managers to ensure profitable and sustainable operations.
RURAL LIFE: There are 13 residents in Ose, and Coop Marked Ose is a vital meeting point.
Photo: Coop
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Coop Marked, managed by Beisland, is located in Ose, Bygland municipality, within the Setesdalen region of Agder county.
“Ose is a very small place, I think there are 13 residents here, last time I counted. It’s a tiny place. It’s mostly people passing through and summer visitors, and so on. And then there are people from other villages who come and use the store.”
“How far away is the nearest competitor?”
“It’s 11 miles one way and 12.5 miles the other way. The closest is a Joker store, and then there’s a Coop Prix store that’s 12.5 miles away.”
The Elderly Gentlemen
This is the opposite of densely populated areas. This is rural Norway. But people still live here, and the store is more important here than it is in more urban areas.
“It’s incredibly important for the upper part of our municipality. Because we have a very long municipality. So the psychosocial environment here in the upper part is very important, especially in that coffee corner. Some people only meet people there, the elderly gentlemen who are widowers and so on.”
“Now there’s a new customer,” Beisland says.
We can hear snippets of store life through the phone.
“Would you like a bag? Have a nice day!”
“Now, I’m back,” Beisland says.
Fuel and Potato Cart
Beisland has taken several steps to diversify the store’s revenue streams.
“I have a mobile fuel system. We lease it to Agder Oil, or Driv as they’re now called.”
And outside the store, there’s a potato cart, which Beisland runs with four friends.
“We get to use the space outside the store for free from Coop to create a little more activity in Ose, and we just pay for the electricity. It’s a win-win. If people stop for a baked potato, they’ll also go into our store.”
POTATO CART: Coop allows the use of space outside the store so Vigdis Beisland and some friends can have a place for the potato cart.
Photo: Coop
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Slowing the Decline
Coop Marked in Ose avoided closure, but that’s not the case for all rural stores. Since 2023, 67 local stores have closed across the country.
The trend is slowly declining, despite the Merkur support. But the decline is being slowed, according to those responsible for the Merkur program.
“Recent research shows that the Merkur program is crucial,” says Marit Mellingen. She is the head of the Competence Center for Rural Development.
Over 500 rural stores receive Merkur support for investments such as solar panels, fuel systems, or adapting the store to be open even when unmanned. The maximum support per project is 800,000 kroner.
“Over 90 percent of stores say that Merkur is important for survival and profitability. Without the program, we believe more stores would have closed,” Mellingen says.
In Innlandet, Coop had planned to close six stores.
“We helped them with a restructuring project so they could re-establish themselves with new concepts. Those six stores are still operating today.”
The Steps That Stop Store Closures
“How important are steps like digitization and 24/7 stores?”
“That’s the most powerful step stores can take. It significantly expands the customer base. It makes the store accessible to vacationers arriving late at night or commuters. You make the store accessible to entirely new customer groups,” Mellingen says.
Some may think it’s strange that large grocery chains with profits are receiving nearly 100 million kroner in public funding.
“What would you say to those who think it’s strange that our tax money is being used to subsidize stores run by the large grocery chains?”
“I understand that thought, but many of these stores operate on very thin margins. Profitability is so weak that it’s barely breaking even. This support often makes the difference between red and black numbers on the bottom line. It’s in the common interest of both the chains and the state to make this work,” Mellingen says.
“I Should Have Shopped Here More”
In Ose, Setesdalen, business continues at Vigdis Beisland’s store.
“How secure do you feel the store is now?”
“I feel very secure. Last year, in 2025, we increased sales by 1 million kroner. It’s never exceeded seven million kroner in sales before, and I did that last year.”
“I was 6,000 kroner short of reaching an extra million, but I realized it too late. I should have shopped here a lot myself,” she says with a chuckle.
