ICA Sweden has announced plans to launch an efficiency improvement programme, which will see the retailer eliminate approximately 200 positions, mainly involving salaried employees.
The company has also instituted a consultant and hiring freeze.
The move will help the retailer save SEK 1 billion (€92 million) annually and focus on offering better value and ensuring customer loyalty.
ICA retailers and ICA Sweden under pressure in terms of market shares and sales volumes due to rising costs, high inflation, a decline in disposable income and greater price consciousness among customers.
'A Very Challenging Situation'
Eric Lundberg, CEO of ICA Sweden, commented, “The grocery retail sector and ICA are facing a very challenging situation, and as a company we need to be more cost-efficient both short- and long-term.[...]
"It requires, among other things, that we take a look at our organisation. I certainly recognise that this comes as tough news for ICA Sweden’s employees, and of course we will offer strong support to the employees who are affected.”
The so called 'efficiency improvement programme', scheduled to be completed in 2023, will free up resources for a joint investment by ICA Sweden and the ICA retailers in a more competitive customer offering.
The work on identifying the 200 positions and any restructuring costs will be conducted during the first quarter of 2023, the company added.
“ICA will always stand on the customers’ side, most importantly during tough economic times, and this vigorous efficiency improvement programme is thus necessary to enable us to better meet customers’ needs,” added Lundberg.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
