The Swedish ICA customers could have enjoyed over one billion in reduced food prices. But despite boasting about the price reductions earlier this year, the billion-dollar investment is conspicuous by its absence.
Prices rise instead
Instead of lowering prices, Ica traders have actually raised their prices steadily since March.
– It would really be good if the investment was also successful at the store level, says Ulf Mazur, CEO and founder of Matpriskollen, in one press release.
Prices continued to increase in May, by 0.1 percent on average. It is a small increase if you compare it with the monthly increases during the past year. Inflation seems defeated.
– The economic situation in recent years has put pressure on consumers who are looking for more value for money. This has meant a high degree of competition among the chains and for consumers it is important not to relax when the worst price increases have now subsided, says Ulf Mazur.
The chocolate is getting more expensive
Prices increase with chocolate, vegetables and oils leading the way. Even small changes in food prices have a big impact on household food budgets.
– Each percentage point in price increases means approximately three billion kroner more expensive daily goods, so these are quite large sums, although in recent years we have unfortunately seen significantly higher increases than that. In total, this is an increase of approximately 23 percent for food-related products since January 2022, says Ulf Mazur.
The billion investment that disappeared
Since January, Ica has promised to push its own prices by one billion kroner starting in March, and after that further reductions. But despite the passage of time, the prices of Ica’s food products do not drop.
“On average, they have actually, on the contrary, increased their prices by 0.4 percent in the last three months, while other chains end up on average at plus or minus zero,” writes Matpriskollen on its website.
Every other food sold comes from Ica
– Since ICA is the largest in the Swedish grocery trade with approximately half the market, it would have a major effect on the general food price picture in Sweden if this reduction were also to reach consumers, says Ulf Mazur.
News24 looking for Ica for a comment.
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