Local ICA retailer: “Lost five, six percent” • Think the boycott is incorrect
Erik Olsson, local trader for ICA Maxi in Olofström says that the store noticed a sales loss of between five and six percent after the boycott against several grocery stores during the week, which feels. This was P4 Blekinge First by reporting.
– It is clear that in a low -margin industry like this is the volume of utmost importance. Our costs still remain in terms of rent or personnel costs and everything else to be paid, he says.
Olsson emphasizes that their store has already made efforts to lower food prices in recent years.
– It is based on the fact that you can handle a certain volume, if the volume then drops, it is not as easy to lower prices, he says.
Thinks the boycott is misguided
The boycott started as a call in social media, where consumers were asked not to shop from stores such as ICA, Coop, Hemköp and Willys during week 12. Erik Olsson thinks it is good that the discussion about food prices is lifted, but believes that the boycott is incorrect.
– This is a world market problem. The entire industry has lowered its margin since food price inflation struck, so to be able to lower it, it is required to higher volume, he says and continues:
– If I lose sales because of a boycott, it is more difficult to lower the price.
To handle a reduced sale, Erik Olsson believes that he may instead have to take action such as postponing planned price reductions, or to reduce staff hours in the store.
Will not raise prices
Instead, he thinks that the government should take responsibility for taking measures that allow prices to be kept down, and emphasizes parts of the proposals that ICA presented after last week’s meeting on food prices. The proposals include reduced food VAT and investments in reducing thefts in the stores. Erik Olsson also wants to see a major domestic food production.
– Then food prices would have had a more stable development. In the long run, the most important thing is that we get a higher degree of self -sufficiency, he says.
Raising prices to compensate for the sales loss after the boycott is not relevant.
– We cannot in any way raise our marginal premiums. It is so high competition that the volume is more important, he says.