With a continued positive trend in customer traffic and higher volumes, Axfood is summarising a fourth quarter, and full year, characterised by stronger market positions. At the same time, strategically important investments were made during the year, and going forward there is a clear plan to further strengthen the Group. Axfood is taking position in the attractive hypermarket segment through the acquisition of City Gross, and several improvement initiatives have at full force been initiated to develop the chain towards growth and profitability. In addition, there is a gradual effect from the optimisation of the new logistics centre in Bålsta, which together with a focus on cost efficiency and productivity strengthens the Group’s competitiveness.
President and CEO Simone Margulies comments on the year-end report for 2024:
“In 2024 we increased our market shares despite high comparison figures. Retail sales growth was 14.1% in the fourth quarter. The market dynamics is characterised by more cautious and price-conscious consumers as well as intense competition in the market. Our focus on productivity and cost efficiency has been intensified, and with our structure and the investments we are making in the base operations we have a good platform to gradually improve our competitiveness over time.
Willys continued to grow more than the market during the final quarter of the year, with growth of 4.8%. Willys have never before had a stronger market position, and it is clear the its momentum is continuing with continued high customer traffic and increased loyalty. The fourth quarter saw another strong development for Hemköp, with like-for-like growth of 4.6%. The chain has made great strides in recent years to strengthen its position in the market, and several new store establishments will create the conditions to further improve its position. Snabbgross has been navigating a challenging café and restaurant market for the last few years, with increased volumes and a higher number of customers, resulting in a stronger market position and growing market share. This trend continued into the fourth quarter, with strong growth of 6.3%.
Following completion of the ramp-up of the new logistics centre in Bålsta in the autumn, our focus has been on optimising the operations. E-commerce flows are also being implemented in parallel with the optimisation of store flows. We are now seeing increased productivity and efficiency, and we expect a gradual improvement in productivity in the coming year.
City Gross gives us presence in hypermarkets, the fastest-growing segment in the market after discount, and we see great potential in the chain. We have a clear plan and have since completing the acquisition introduced several initiatives to strengthen City Gross’ competitiveness. To create a healthier foundation, we are also planning structural measures at a handful of stores during the year, mainly related to conversions to other concepts. Our ambition is to strengthen City Gross and the estimate is now that we will reach profitability at some point during the second half of 2026.
To encourage even more customers to shop with us, we will continue to maintain a high rate of new store establishments in 2025 and beyond. Our ambition for 2025 is to expand the store network by 10–15 new Group-owned stores, the majority of which will be Willys. Axfood has a strong financial position, and the Group’s investment needs are expected to amount to between SEK 1.6 billion to 1.7 billion in 2025. The Board of Directors proposes that the Annual General Meeting approve an increased dividend of SEK 8.75 per share, to be paid out on two occasions.
We are entering 2025 with a lot of energy and see major opportunities to further challenge, strengthen our positions and take advantage of our longer-term initiatives.”
