The beginning

The Danish government acquires the shares in Handelskompagniet, a trading company established in 1750, and by Royal Decree of 16 May 1774 establishes the Royal Greenland Trading Department (Den Kongelige Grønlandske Handel, KGH) . Two years later, in 1776, a Royal Decree prohibits “all illegitimate trade” as it was called, thereby granting KGH a monopoly on all trade in Greenland.

The trading monopoly era: 1776 - 1950

Until World War II, KGH had a monopoly on all trade in Greenland. Standardised prices were introduced across the country on both the purchase price of local catch and the retail price of groceries, and KGH was assigned a public service obligation contract to supply all of Greenland’s settlements. To improve the efficiency of how catch was purchased, KGH established a network of trading posts at all catch landing sites in Greenland; the precursors of many of Greenland’s modern towns and settlements. The planned economy maintained by the monopoly provided a financial safety net for the population, but also a rigid, prohibitive system that precluded free market forces, and which ultimately restricted economic development in Greenland.

Establishment of a trading network

During the 1800s, KGH established a fine-meshed network of 13 trading districts in which many small outposts of the trading stations opened a small KGH store. In Greenland’s early history as a Danish colony, the buying of Greenland products and the sale of Danish goods was by barter trade. In the period 1801-1967, KGH issued credit notes (Greenlandic money) for the population to spend at the stores in Greenland.

After 1920, the Greenlandic fishing fleet gained more and more motorised fishing boats, and KGH established fish processing factories in Greenland’s towns. Within a few decades, the Greenland fisheries replaced the traditional kayak-based seal hunting trade as the primary source of income for many Greenlandic families.

A new situation: 1940-1945

With the occupation of Denmark by Germany, Greenland suddenly faced a supply crisis, as KGH could no longer ship commodities from Denmark. Instead, it established trade with the USA, financed by fish and the rare mineral cryolite. Those 5 years gave Greenland extensive experience of independent trade away from Denmark. The population was now introduced to new goods, and in the post-war era, there was increasing demand for more new commodities and access to realising private initiatives.

Polaroil is established

KGH builds the first tank farm in Aasiaat. In 1949, the towns of Qaqortoq, Nuuk and Sisimut also gain a tank farm. By 1950, the towns of Paamiut, Qeqertarsuaq, Upernavik and Thule (Uummannaq) were the next to benefit from having their own tank farm. Also in 1950, DGO, now Polaroil, was established under KGH, with an import storage facility in Kangerluarsoruseq. Polaroil was now responsible for fulfilling the public-service order contract between the Greenland Home Rule government and KNI for the supply of liquid fuels to Greenland.

The Danish state monopoly is dismantled

From this year on, KGH is operated independently of Denmark’s Ministry for Greenland. In the same year, Polaroil is incorporated into KGH. Over the following years, other companies such as Air Greenland, Royal Greenland, Tusass and Royal Arctic Line are spun off from KGH.

KNI Engros

When KGH held the monopoly on trade in Greenland there was no basis for the wholesale trade as it is known today. Following the dismantling of the trade monopoly in 1951, wholesale trade started on a small scale, and primarily only for former monopoly-controlled goods such as cigarettes, spirits and beer. Today, KNI Engros is a wholesale supplier of all types of goods, and holds a contract on Greenland-wide distribution of beer and carbonated beverages.

KGH opens its first supermarket in Nuuk. This new form of self-service store is a popular innovation and an instant success.

After just over 150 years, KGH ceases issuing credit notes and coins. From 1 July, the currency in Greenland is Danish bank notes and coins. Danish banks jointly establish branches in Greenland.

After about 250 years at the North Atlantic wharf (Nordatlantens Brygge) in Copenhagen, the Greenland port is relocated to brand new port facilities in the north of Denmark’s Jutland peninsula, Aalborg. To improve shipment efficiency to Greenland, new unit-load vessels are acquired, and 60 port-terminal workers are hired. In 2022, the Greenland port relocated to Aarhus in central Jutland.

With a referendum majority of 70.1%, the introduction of Home Rule (Greenland Self-Government) is adopted on 1 May.

KGH’s fishing industry activities are spun off and Royal Greenland is established as an independent company owned by the Greenland self-government authorities (Naalakkersuisut).

KGH is acquired by the government of Greenland and renamed Kalaallit Niuerfiat – KNI, meaning ‘Greenland trading company’.

Pisiffik is established

Pisiffik is located only in main towns, and therefore has to be operated on ordinary competitive terms. Pilersuisoq’s contract, however, is to serve the more remote and less profitable towns and settlements. KNI sold Pisiffik to Dagrofa in 2001.

1993–2001

In 1993, KNI is reorganised into several independent limited companies such as Royal Arctic Line and the retail chains Pisiffik and Pilersuisoq. In 1997, the Government of Greenland decides to divest local freight and passenger transport, as well as the Greenland postal service into separate companies. In 2001, Pisiffik is acquired by private investors, and KNI acquires Pisiffik’s stores in the towns of Nanortalik, Narsaq, Paamiut and Qasigiannguit. In addition, KNI operates duty-free sales at the airport at Kangerlussuaqq.

Neqi

Neqi is established in Narsaq as a facility for buying, processing and selling farm produce (meat and crops) sourced from South Greenland.

Pilersuisoq acquires the Duty Free stores at the two international airports in Kangerlussuaq and Narsarsuaq.

Polaroil is relocated to Sisimiut.

KNI relocates its offices serving the Polaroil energy division to Sisimiut. The relocation consolidates management, administration and technical resources in the same town as the headquarters at Sisimiut.

The online store pisisa.gl is launched on 1 May.

The aim is to give customers residing in small settlements better shopping options, and to give the store more warehousing space. On the pisisa.gl site, consumers can buy furniture and kitchen equipment not sold at the local store.

Meqqusaalik – KNI’s own clothing brand

Elisa Petersen, a store owner in Uummannaq, proposes that Pilersuisoq starts producing its own outdoor wear adapted to the Greenlandic environment. This sees the start of Meqqusaalik, which is currently developed at the KNI service centre in Sisimiut.

Mamarisavut

Mamarisavut was established to inspire people in Greenland to enjoy healthier meals. The inspiration comes from the Greenlandic way of life and various ingredients we have access to throughout the year. The recipes are made using goods available from the Pilersuisoq grocery chain and customers’ own catch.

Pilersuisoq stores are given a new, more distinctive and contemporary Greenlandic brand identity. This is well-received by the customers, and two years later, Pilersuisoq wins two international design awards: Red Dot and Moebius Award.

Pilersuisoq’s own-label production of home décor is consolidated under the name KNI Design, which offers items inspired by Greenlandic culture and heritage. KNI Design is housed at the service centre in Sisimiut.

As of 7 September, Pilersuisoq’s regular special-offers mailings are only issued digitally.