ICA makes a big profit – the CEO promises lower prices

Commodity prices are falling and inflation is slowly coming down. But food prices are on the way up again, according to the company Matpriskollen. Above all, basic goods such as coffee, oil and vinegar have increased greatly in price.

At the same time, several grocery store chains report a large increase in profits recently. Among them is the ICA group, whose profits before tax went from SEK 185 million at the end of 2022 to SEK 931 million at the end of 2023.

ICA promises lower prices

Revenues for the ICA Group rose to SEK 38.8 billion, which corresponds to an increase of 7.6 percent. The group includes, among others, Ica-banken and Apotek hjartat.

Now Ica’s CEO Nina Jönsson believes that Ica will invest one billion kroner, which corresponds to just under one percent of Ica’s turnover, on a so-called “price investment” that will lower the price to the stores, which could lead to the stores lowering food prices.

– Now we are making a billion dollar investment and lowering the prices for our stores. Then our stores can lower the price to the consumer. This mainly applies to everyday goods that customers often buy, she says.

Will customers notice?

– Yes, it should definitely be noticed.

It is still a rather small part of the profit. Why don’t you add more?

– We invest quite a lot in the business. In our stores and in our infrastructure.

More food chains are making a profit

ICA is not the only grocery store chain that reported big profits after the past quarter. Food giant Axfood, which owns Willys and Hemköp, for example, has proposed a dividend to shareholders of SEK 1.84 billion.

– There have been overtures from various chains throughout the last year, and we have really said all along that we work to offer our customers the lowest prices possible in the entire shopping basket, says Axfood’s press manager Magnus Törnblom and continues:

– It is clear that we also have campaigns. Willys, for example, has the ambition to have Sweden’s cheapest grocery bag, which surveys also show that they have. What others do does not change our ambition.

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