Market development

The grocery retail market in Sweden is a mature market which for many years has included ICA, Axfood, Coop and Bergendahls. Combined, these players account for around 70% of the market.

Competition in the market has increased in recent years, mainly due to the expansion of low-cost chains, but also to increased competition from other channels such as restaurants and pre-packed grocery bag solutions delivered directly to customers. In average, a Swedish household spent approximately 12% of its disposible income on food.

Although development in grocery retail in 2014 is expected to be positive, the sector is still sensitive to economic conditions around the world. The most significant growth in percentage terms is expected to be in online sales, albeit from low levels. Competition is expected to remain tough.

Development in grocery retail market, SEK m

Growth 4%

  
Market share*, Sweden
  

*Calculated based on total grocery consumption irrespective of channel according to Nationalräkenskaperna (Sweden’s National Accounts). Grocery sales including VAT in ICA stores totalled SEK 105,494 million in 2012.

At the time of publication of the Annual Report the 2013 figures had not yet been published.