Swedish retailer Axfood reported a 16.6% increase in retail sales, to SEK 16.1 billion (€1.4 billion) in the second quarter of its financial year, with chief executive Klas Balkow citing the group's "strong position" in the market.
Overall group net sales rose 12.6% to SEK 20.8 billion (€1.81 billion), while operating profit amounted to SEK 878 million (€76.6 million) for the period.
'Increased Activity'
“The quarter was characterised by an ongoing strong focus on price value and an increased level of activity in the market," Balkow commented.
"In this market, Axfood is maintaining its momentum with a retail sales growth rate of 17% in the second quarter, compared with 9% for the market. Through increased customer traffic and higher volumes, we maintained a very high growth rate despite a significant decline in inflation."
Retail Sales
Like-for-like sales growth across Axfood's retail portfolio was up 13.8% in the quarter, primarily driven by the strong performance of its Willy's banner, it said.
Net sales at Willy's were up 19.8% in the quarter, with Hemköp growing by 11.9%. Elsewhere, Axfood's Snabbgross business reported a 14.6% increase in net sales, and Dagab was up 13.5%.
"Willys is Sweden’s most recommended grocery chain, with high customer loyalty and an excellent platform to build on to further strengthen its position in the long term," Balkow commented.
"Hemköp also demonstrated good growth during the quarter, which was not only higher than the growth rate of the other players in the traditional grocery segment, but also higher than the market’s growth overall."
Since the period ended, the managing director of Dagab, Nicolas Pettersson, has been appointed the new managing director of Willy's, effective February of next year.
