
Iceland vacations are not inexpensive. Accommodations, sights, and even meals at casual restaurants come 50% higher than in most of Europe or North America, so every purchase feels like a choice. But the cost can be softened, particularly for essentials on a daily basis: by shopping wisely at the local grocery stores. Unlike well-known chains in other nations, Iceland’s grocery stores are distinct, and discovering the appropriate one requires some insider information.
Having explored Iceland multiple times over the past decade, I’ve learned the ins and outs of its retail scene. One store stands out above the rest: Hagkaup. Often called the “Walmart of Iceland,” it’s a one-stop shop that’s won my heart and left me wishing for something similar back home in the US. Here’s why Hagka up is a game-changer for travellers and a model for what retail could be.

1. A Genuine One-Stop Shop
Entering Hagkaup is immediately comfortable to Americans, recalling Walmart’s extensive products. Established in 1959, this Icelandic store, with seven outlets nationwide, is a mainstay of neighborhood shopping. Last week, I visited the Kópavogur store, only 5 miles from Reykjavík, and was impressed by its sheer range. Hagkaup sells everything from food to clothes, toys to kitchenware, all in one shop. Tour blog sites and guides, such as Globe City Guide, sing the praises of its wide selection, and it’s not hard to see why. This isn’t convenience it’s a hassle-free shopping experience that saves time and energy, something I can seldom find in the US’s increasingly departmentalized stores.

2. A Unique Product Selection
Hagkaup is more than just groceries, and it wholly owns its position as a full-fledged department store. In the course of fetching fresh produce, you may find yourself crossing paths with trendy clothes, makeup, or even a new light fixture. This diversity translates to less stops on your journey, which is a blessing when dealing with Iceland’s hefty prices. In contrast to the fragmented shopping environment of the US, where you’d make several stops for these types of products, Hagkaup merges need and exploration. You can pick up dinner supplies and a birthday present in one outing, making chores a streamlined adventure. It’s a convenience that borders on revolutionary.

3. A Stellar Salad Bar
Arguably Hagkaup’s biggest draw is its salad bar a lively, better-stocked-than-you’d-expect corner that’s a world away from the wilted lettuce of yore. In a nation where eating out can swallow your paycheck, this salad bar is a thrifty treasure for tourists and health-food shoppers. You get to build your own meal with fresh produce, a welcome relief from expensive restaurants or pre-packaged meals. Though salad bars have appeared in the US before, discovering one this solid in a department-store environment is a novelty. It’s a tasty, thrifty way to eat well and stay within budget.

4. A Candy Lover’s Paradise
Hagkaup’s pick-your-own candy aisle is a treat. Imagine aisles lined with bins full of all types of sweets, beckoning you to make your own personal blend. It’s not just a display it’s an experience that sparks nostalgia and excitement, like stepping into a classic candy store but on a grander scale. This interactive setup turns a simple purchase into a fun activity, adding a unique charm to the shopping trip. Compared to the standard candy aisles in US stores, Hagkaup’s version feels like a delightful treat, making me wish for something similar stateside.

5. 24-Hour Convenience
Most Hagkaup stores operate 24 hours a day, a feature that’s a traveler’s dream. Whether you’re landing late at night or need a snack after a midnight adventure, Hagkaup is there. This round-the-clock access eliminates the stress of rigid store hours, offering flexibility that’s rare in the US, where late-night options are often limited. Knowing you can pop in anytime for essentials or a quick meal adds peace of mind and spontaneity to your trip. It’s a practical touch that makes Hagkaup feel like it’s built around real-world needs.

6. Worth the Slightly Higher Price
Iceland’s high prices are no secret, and Hagkaup is not the bargain stores like Bónus or Kronan tend to charge less. But the trade-off is worth it. Hagkaup’s convenience of doing everything in one stop saves time, transportation fees, and energy, particularly on a packed vacation itinerary. For me, having the convenience of doing all my shopping in one stop justifies the slightly higher price. It’s an investment in a smoother, more enjoyable trip.

7. A Legacy of Innovation
Hagkaup is more than a store; it’s Icelandic history. Established in 1959, it’s one of the nation’s longest-running retail brands, surviving for more than six decades by evolution with the needs of its consumers. This survival is a testament to an intimate know-how of its market and an ability to change. For shoppers, shopping at Hagkaup is like making contact
with a reliable institution. Its ability to remain relevant while still holding on to its essence is something I respect and hope US retailers can learn from.

8. A Redesign That Redefines Shopping
Hagkaup’s Smaralind store underwent a bold overhaul, shrinking its footprint by 50% while reimagining the shopping experience. Partnering with customer journey experts M Worldwide, Hagkaup crafted a space that prioritizes “happy shopping.” The redesign encourages lingering and exploration, moving away from the rushed, in-and-out model of traditional supermarkets. This thoughtful approach creates an environment where shopping feels engaging and enjoyable, a stark contrast to the utilitarian stores I’m used to.

9. The “Happy Shopping” Philosophy
Hagkaup’s “happy shopping” spirit is infused into every aspect, from design to customer contact. While efficiency-only stores seem to forget that shoppers now crave lively places to explore and find, Hagkaup knows today’s consumers desire interactive spaces in which they can shop and discover. This strategy turns chores into a discovered experience, inviting regular stops for smaller items. It’s a welcome change that makes each visit less chore and more delight.

10. A Department Store Vision
Hagkaup’s new look is intended to be more akin to an upscale department store than an ordinary supermarket. Beyond its grocery offerings, it has a carefully selected blend of fashion, home decor, and more, with elegant displays and exclusive zones. This concept manifests as an active, in-and-out experience that’s not common in the US, where shopping usually equals several stops. Hagkaup’s potential to combine utility with discovery within one space is just what I miss in my hometown.

11. Four Worlds, One Store
Hagkaup segments its enormous products into four “worlds”: Food for Now (ready-to-eat foods), Food for Later (ingredients to be cooked), Non-food (clothes, cosmetics, toys), and Grocery (basic household items). Segmentation makes the navigation smooth, as if you are browsing specialized boutiques in one location. It’s an intelligent design that assists you in locating what you are searching for while encouraging you to discover more, which will enrich your experience.

12. A Vibrant Central Avenue
Linking these worlds is Hagkaup’s main street, an energetic corridor that’s anything but a passageway. Flanked with market stall stands featuring seasonal items or fresh fruits, it injects character and maintains the store in an up-to-date state. This considered design makes circulation through the store an interesting experience, inviting you to linger and shop. It’s the quiet touch that raises the entire experience.

13. A Warm Aesthetic
Hagkaup’s design incorporates natural materials to provide a welcoming, friendly ambiance, complemented by bold brand colors to emphasize the focal points. Combined wayfinding and graphics smoothly integrate within each “world,” ensuring ease of navigation and esthetical appeal. The combination of simplicity and bold contrast provides a contemporary but genuine atmosphere, elevating the “happy shopping” atmosphere.

14. Creating Joyful Shopping Moments, the Hagkaup Way
Hagkaup isn’t just a place to grab groceries it’s a place where shopping feels like a treat. Every visit is carefully designed to surprise and delight, transforming the everyday into something special. It’s not just about what’s on the shelves; it’s about how you feel walking through them.
Take the cosmetics and makeover area, for example. It’s more than a section it’s a mini escape. You can pick up your essentials, then pause for a quick beauty consultation or a refreshing touch-up, all without leaving the store. It adds a sense of self-care and luxury to your weekly errands.
And then there’s the fun, food-filled experience. A live Krispy Kreme factory and café, a buzzing sushi bar, and other beloved third-party brands make Hagkaup feel more like a lifestyle destination than a supermarket. These vibrant, interactive spots turn shopping into an outing something to look forward to.
It’s this thoughtful blend of convenience, indulgence, and experience that makes Hagkaup so special. Honestly, it’s the kind of store you wish existed everywhere especially here in the U.S.

15. Memorable Moments Beyond Shopping
Hagkaup extends beyond necessities with thoughtfully designed experiences such as a cosmetics and makeover station, a Krispy Kreme factory/cafe, and a sushi bar. These extras add glamour and entertainment to the store and make it a destination, not merely a stop. Whether picking up groceries or grabbing a quick sushi roll, these amenities transform ordinary trips into special occasions.
A Model for the Future
Smaralind in Hagkaup has defied expectations with reduced footprints despite achieving skyrocketing sales and higher foot traffic, affirming the success of its “happy shopping” concept. Its success has prompted plans to replicate the idea in another branch, demonstrating its power to transform retail. For an American such as myself, Hagkaup’s combination of convenience, choice, and lively design is a template for what US stores might be, making me fantasize about the day that we have our own version of this Icelandic treasure.