Swedish retailer ICA has announced plans to raise its capital expenditure budget to SEK 3.5 billion next year, up from SEK 2.5 billion in 2016, to 'secure long-term growth', the company said in a statement.
At its Capital Markets Day in Stockholm today, ICA said that it is upping its IT investment, which will 'create better conditions for continued digitalisation, improved loyalty services and improved operation of the daily business'.
In addition, the group plans to 'strengthen and modernize' its store and pharmacy network, as well as expand its logistics capabilities at Rimi Baltic.
The investments will be partly financed through the sale of real estate, with ICA set to sell properties to a joint venture at the start of 2017, generating around SEK 800 million.
The number of new store openings undertaken by the group in 2017 is expected to be slightly lower than in 2016. 'ICA Sweden plans to open 10 to 15 new stores in 2017, compared with a total of 17 in 2016,' it said. 'Rimi Baltic plans to open ten new stores in 2017, compared with a total of 15 in the current year. Apotek Hjärtat plans to open a total of 14 new pharmacies in 2017, compared with 11 this year.'
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
