ICA establishes new simpler organization
ICA establishes new simpler organization
Solna February 21, 2007
ICA establishes a new and simpler management organization with three, rather than four, Group functions. Meanwhile, ICAs subsidiaries will have clearer responsibility for results as well as responsibility for local customer offerings. At the Group level, coordination will primarily be strengthened in joint international purchasing. Sonat Burman-Olsson has been appointed CFO of ICA AB in the new management structure.
During 2006, ICA carried out several structural changes that have resulted in clearer operations. ICA Meny was divested and ICA now owns 100 percent of Rimi Baltic. ICA has also reduced its holding in Netto from 50 to 5 percent and is in the process of phasing out its Etos stores in Sweden.
In response to the new Group structure and to increase local adaptation, ICA establishes a new organization. It will provide ICAs subsidiaries with greater responsibility for results while also facilitating coordination between companies.
The subsidiaries, ICA Sverige, ICA Norge and Rimi Baltic will have greater authority over local customer offerings. They will therefore partly take over responsibility for purchasing and assortment, especially in fresh foods and selected areas of market communication. They will have a clear responsibility for results. The subsidiaries will also assume responsibility for logistics operations in their respective countries.
The Group function Assortment/Buying will be responsible for developing synergy effects and coordination in purchasing and assortment issues between companies. The focus will be on Nordic/Baltic purchasing and joint international purchasing as well as Group logistics development. Anders Nyberg, Executive Vice President ICA AB, will head the function.
The Group function Market will have a clearer coordination role, especially with regard to ICAs strategic development. The function includes business development, strategic market communication, and customer and quality services. Ingrid Jonasson Blank, Executive Vice President ICA AB, will head the function.
The Group function Finance will remain from the earlier organizational structure. However, ICA Fastigheter (Real Estate) will now report directly to ICAs President and CEO. Sonat Burman- Olsson will head the Finance function and has been appointed new CFO of ICA AB.
With the reorganization, Karl Wistrand leaves the office of CFO/Executive Vice President ICA AB and will assume other responsibilities in the Group. Sven-Olof Kulldorff, Executive Vice President Supply Chain, will in connection to these changes, leave the ICA Group.
"The new organization enables us to more effectively support business in existing and, in time, in possible new companies," says Kenneth Bengtsson, President and CEO, ICA AB. "The change also gives us the means to further strengthen Group-wide synergy effects and coordination."
The organizational changes will further result in increased cost efficiency. Later this spring, ICA will announce a cost reduction programme.
For further information, please contact: Kenneth Bengtsson, CEO and President ICA AB, +46 8 561 502 58 ICA press hotline, +46 70 253 66 60 ----------------------------------------------------------------------------------------------------- About ICA The ICA Group (ICA AB) is one of the Nordic regions leading retail companies, with around 2,300 of its own and retailer-owned stores in Sweden, Norway and in the Baltic States. The Group includes the subsidiaries ICA Sverige, ICA Norge, Rimi Baltic and Etos. ICA also offers financial services to Swedish customers through ICA Banken. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold N.V. of the Netherlands. According to a shareholder agreement, Royal Ahold and Hakon Invest jointly share controlling influence over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se