Axfood's third quarter results reports a continued positive trend in customer traffic, increased volumes and reinforced market positions, despite high comparison figures.
Profitability was impacted by additional initiatives to strengthen price positions, according to the interim Q3 report published on Thursday morning.
The quarter was also characterised by a continued strong focus on investments for the future, and the ramp-up for all stores was finalised at the new logistics centre in Bålsta.
Higher Volumes
In addition, the Swedish Competition Authority recently approved the group’s City Gross acquisition, an acquisition that will strengthen competition on the market and create new opportunities for Axfood.
In her first interim report since assuming the role of president and CEO in August, Simone Margulies said, "Although comparison figures remained high, Axfood’s growth for the third quarter was in line with the market, with higher volumes and a positive trend in customer traffic contributing to a 3.5% increase in retail sales.
"As a result, we are once again reinforcing our market positions, and conditions to continue challenging and growing."
Price Position
Marguiles said the fact that Willys continued to defend its strong position this quarter, with growth of 3.8%, is a sign of strength.
"Initiatives to strengthen its price position had a negative impact on profitability during the quarter in a market with intense competition," she said.
"These initiatives are implemented to secure the profile with Sweden's cheapest bag of groceries, and contributes to a continued high level of customer traffic and loyalty as well as a strengthened market position going forward.
"Through favourable growth of 4.5% in like-for-like sales and effective cost control, Hemköp continues to successfully and profitably navigate the traditional grocery retail segment of the market.
"Our restaurant wholesaler Snabbgross is taking further steps and strengthens its market position. Growth was 5.6% in the quarter, with higher volumes and an increased number of customers."
