Strong development continues
More customers, increased sales and positive private label development all show that our customers continue to appreciate ICA. Combined with increasingly efficient logistics, this resulted in another strong year for ICA Sweden.
With just over 1,300 stores and a market share of around 36%, ICA Sweden is the leading grocery retailer in Sweden. The business is operated in cooperation with independent ICA retailers. They each own and operate their own stores, making it possible to tailor concepts and offers to local demand. There is also extensive collaboration on expansion, sourcing, logistics, IT and marketing communication, enabling economies of scale to be achieved.
ICA Sweden has a pharmacy business under the name Cura, a convenience concept called ICA To Go and ICA Special, which works with sourcing and sales of non-food items including non-food sales in the Maxi ICA Stormarknad. ICA Special also runs a wholesale operation for ICA Kvantum, ICA Supermarket and ICA Nära in Sweden and delivers products to ICA’s operations in Norway and the Baltic countries.
Strong sales and income growth
ICA Sweden’s net sales increased by 3.4% in 2013, largely driven by higher sales within wholesale and at Cura pharmacies. Sales in comparable units increased by 2.7%. Sales of private label products increased by 1.3 percentage points during the year.
Operating profit excluding non-recurring items improved during the year to SEK 3,058 million (2,872). Higher sales, improved margins in wholesale due to a higher proportion of private labels, efficiency improvements in logistics and improved earnings for the Cura pharmacies contributed to the improvement in earnings.
The stronger sales also helped to strengthen ICA Sweden’s position in the grocery market during the year.
|Net sales, SEK m||67,992||65,750|
|Operating income excl. non-recurring items, SEK m||3,058||2,872|
|Operating margin excl. non-recurring items, %||4.5||4.4|
|Private label share of sales, %||21.4||19.6*|
|Number of employees||7,617||7,229|
|* Private label share was 20.1% according to changed definition 2013.|