ICA Sweden to carry out efficiency improvement programme, free up resources for improved competitive strength

ICA Sweden is launching an efficiency improvement programme to enable initiatives for greater price value and customer loyalty. In total the programme is expected to free up SEK 1 billion annually and will initially entail the elimination of approximately 200 positions. The programme is expected to be completed for the most part during 2023.

A challenging situation in the business environment with rising costs, high inflation, decreases in disposable income and consequentially greater price consciousness among customers has put both ICA retailers and ICA Sweden under tough pressure, both with respect to market shares and sales volumes.

ICA Sweden is therefore taking measures together with the ICA retailers to reverse this trend. This will be conducted through an efficiency improvement programme in ICA Sweden which will free up resources for a joint investment by ICA Sweden and the ICA retailers in a more competitive customer offering. The programme, which is expected to free up approximately SEK 1 billion on an annual basis, aims to cut costs and involves an organisational review which will initially entail a reduction of approximately 200 positions, mainly of salaried employees. ICA Sweden has also instituted a consultant and hiring freeze. The work on identifying the 200 positions as well as any restructuring costs will be conducted during the first quarter of 2023.

“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. The programme will enable us, together with the ICA retailers, to offer improved price value to our customers and reverse the negative growth trend. 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,” comments Eric Lundberg, CEO of ICA Sweden.

The initiatives addressed by the programme will enable ICA to offer lower prices to consumers and investment in ICA’s private label products along with continued development of ICA’s loyalty programme, Stammis, in an effort to strengthen ICA’s competitiveness and increase customer loyalty.

“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,” adds Erik Lundberg.

For more information
ICA Gruppen press service, telephone number: +46 (0)10 422 52 52, e-mail: press@ica.se

icagruppen.se

ICA Gruppen AB (publ) is one of the leading retail companies in the Nordics with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic which mainly conduct grocery retail, ICA Real Estate which owns and manages properties, ICA Bank which offers financial services, ICA Insurance and Apotek Hjärtat which conducts pharmacy operations. In 2021, ICA Gruppen had a turnover of approximately SEK 128 billion. For more information, see icagruppen.se.

ICA Sweden is the leading grocery retailer in Sweden. With focus on food and meals, ICA Sweden strives to make every day a little easier for its customers. The more than 1,200 independent ICA retailers own and operate their stores themselves. ICA Sweden has agreements with the retailers on coordinated sourcing, logistics, market communication and store development, among other things. ICA Sweden is part of ICA Gruppen.