Axfood acquires Spar Kronprinsen store Malmö

Axfood has acquired the Spar Kronprinsen store in Malmö, with annual sales of SEK 55 m. The store will be taken over on 1 March 2005 and converted to Hemköp during the spring. “This is yet another deal that is entirely in line with Axfood’s strategy to increase the number of wholly owned stores,” says Anders Nyberg, head of business development at Axfood AB.

In 2004 Axfood made the decision to combine the Hemköp and Spar chains and thereby create a proprietor-run store division within Hemköp. The decision adds over 170 stores to the Hemköp chain with combined sales of roughly SEK 9 billion. Conversions from Spar to Hemköp will be completed before mid-year 2005. “We have begun building of one of Sweden’s premier grocery store chains,” says Carl-Erik Möller, President of Hemköp. “We are targeting the large group of consumers who take an active interest in food and cooking. Through the new chain’s size we will be able to offer attractive prices as well as the best foods – both with respect to quality and innovativeness.” Competition for traditional grocery stores in Sweden has intensified in recent years, with discount stores and hypermarkets both capturing market shares. Axfood has an approximate 20% market shares in the “traditional grocery store” segment. The store employees will be transferred to Hemköp in connection with the takeover. For further information, please contact: Anders Nyberg, Executive Vice President & Head of Business Development, Axfood AB, tel. +46-705-27 37 47 Carl-Erik Möller, President, Hemköp, tel. +46-8-553 99 901, +46-705-47 94 06 Kenneth Wall, Press Manager, Axfood AB, +46-703-124 122 For additional information, visit: www.axfood.se