Swedish retailer Axfood has said that it is 'taking significant steps' to ensure its future competitiveness, through recent acquisitions and the bolstering of its logistics network.
A few weeks ago, Axfood announced the acquisition of Bergendahls Food and a minority stake in City Gross, deals which the business said is both 'beneficial to customers' and strengthens its position in the market.
Following on from that, the group is taking steps to enhance its logistics network, with agreements signed for a new automated e-commerce warehouse in Backa, Gothenburg, expansion of another warehouse at the same location, and the introduction of an automated warehouse for fruit and vegetables in Landskrona.
Strengthening The Business
"These investments complement our new logistics centre in Bålsta and will strengthen the entire Axfood family and external customers, and will create further conditions for growth and profitability for many years to come," commented Klas Balkow, Axfood chief executive.
The group made the announcement as it reported a 2.5% increase in net sales for the second quarter of its financial year, to SEK 13.9 billion (€1.36 billion), while store sales for the Axfood Group totalled SEK 12.06 billion (€1.18 billion), a 1.1% increase.
Operating profit, including acquisition costs of SEK 54 million related to the transaction with Bergendahls, stood at SEK 607 million, roughly on a par with the same quarter last year.
Axfood 'Closes A Strong Quarter'
“I can happily note that we have closed yet another strong quarter at the same time that we continue to maintain a very high tempo in our investments for the future," said Balkow.
"Despite high comparison figures, a negative calendar effect and the lowest food price inflation in many years, Axfood continued to grow with growth in store sales that was higher than the market. Excluding costs related to the Bergendahls transaction, group operating profit and profitability grew significantly. We continue with a high tempo to ensure competitiveness also in the longer term."
Completion of the Bergendahls and City Gross transactions is subject to approval by the Swedish Competition Authority.
Recently, the group said that while it had enjoyed increased online sales, the performance of its cross-border outlets was decimated as a result of the pandemic.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
