Targets and strategy
Targets and strategy
With a strategic framework, concrete focus areas, a purpose-driven company culture and deep-rooted core values, we can offer affordable, good and sustainable food, make a difference and create value for our stakeholders.
To be the leader in good and sustainable food, we are pursuing a strategy of growth-promoting and efficiency enhancing priorities. We drive growth by developing and offering an attractively priced assortment. Apart from growing sales at existing stores, key initiatives include continued expansion through the e-commerce roll-out and establishment of new formats and more stores. We are striving to increase efficiency in the organization through a more data-driven work approach and persistent development of logistics solutions of the future. To stay at the forefront we need to continue building a culture that enables us to attract and develop the industry’s best employees.
Axfood focuses on six strategic focus areas – the customer meeting, the customer offering, expansion, the supply chain, work approach and our people.
Axfood manages and continuously monitors the Group’s operations based on a set of strategic Group-wide targets. By maintaining a strong financial position and sustainable operations, scope and conditions are created for long-term profitable growth.
Axfood will grow faster than the market. During 2020 Axfood’s store sales increased by 8.7% (6.0%), while growth for the market was 7.6% (3.1%), according to the Swedish Food Retailers Federation. Axfood thereby grew more than the market and increased its market share, which is in line with the Group’s target.
The operating margin will be at least 4% over the long term. In 2020 the operating margin was 4.7% (4.5%), which is in line with the Group’s long-term target.
As a consequence of adoption of IFRS 16, the equity ratio shall amount to at least 20% at year-end. As per 31 December 2020 the equity ratio was 24.3% (24.6%), which is in line with the Group’s target.
Axfood will have net zero emissions from own operations by 2030 at the latest. In 2020, greenhouse gas emissions amounted to 39,754 tonnes CO2e. Up until 2020 the target was also to reduce the carbon footprint from own operations by 75% by 2020 (base year 2009) and to be climate-neutral by 2020.
Change in electricity consumption
Axfood’s target has been to reduce its electricity consumption by 15% per square metre of store and warehouse space by year-end 2020 (base year 2015). During the period electricity consumption per square metre decreased by 8.8% (5.6%). In 2020 a new target was adopted to reduce electricity consumption by 10% per square metre by 2025 (base year 2020).
Share of sustainability labelled products
By 2025 the share of sustainability-labelled products as a percentage of the Axfood Group’s stores sales will amount to 30%. In 2020 sustainability-labelled products accounted for 28.3% (26.9%) of total sales. The definition
for this key performance indicator was set in 2019 and comparison figures for the years prior to 2018 have not been calculated.
Axfood will have an even long-term gender balance in management positions, defined as such that men and women will be represented within a range of 40%–60%. In 2020 the share of women in management positions was 33% (30%).
Axfood’s target has been that at least 20% of Axfood’s managers will have an international background by 2020. In 2020, 15% (15%) of Axfood’s managers had an international background.
Work attendance rate
The work attendance rate among Axfood’s employees will be at least 95%. The work attendance rate in 2020 was 93.2% (94.4%). The work attendance rate was negatively affected during the pandemic. In 2020 a new target was adopted that Axfood’s sickness-related absence rate will be less than 5.3%.