Targets and strategy

Axfood’s business concept is to serve as a family of different concepts working in collaboration, and the vision is to be the leader in affordable, good and sustainable food. This is how Axfood creates a greater quality of life for everyone, which is the Group’s purpose.

Work is carried out based on a strategy comprising growth-promoting and efficiency-enhancing focus areas. To promote growth, focus is on developing and offering an affordable assortment. Apart from growing sales at existing stores, key initiatives include continued expansion through more stores, the e-commerce roll-out and the establishment of new formats. The Group is made more efficient through a more data-driven work approach and continued development of the logistics solutions of the future. To stay at the forefront, initiatives and activities to strengthen the culture and engagement are prioritised to attract and develop the industry’s best employees. Axfood is to take the lead in promoting sustainable food in Sweden by taking a stance, inspiring and offering guidance.

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.

Financial targets

Growth

Axfood will grow faster than the market. In 2025, Axfood’s retail sales increased by 16.4% (6.8). Excluding City Gross, the increase was 5.9% (4.3), while market growth was 4.5% (4.1), according to the Swedish Food Retailers Federation and HUI Research.

With different concepts and strong positions in all segments, Axfood has grown faster than the market for many years. This development continued in 2025. The acquisition of City Gross contributed to the Group’s growth, but even excluding City Gross, Axfood’s growth was higher than the market’s.

Profitability

The operating margin will be at least 4.5% over the long term. The operating margin in 2025 was 4.0% (3.9).

The operating margin has been below the profitability target in the last few years as a result of strategic investments in base operations and the acquisition of City Gross. Over time, these investments – together with the development of the store chains – are expected to create increased profitability.

Financial position

The equity ratio is to amount to at least 20% at year-end. As of 31 December 2025, the equity ratio was 21.2% (20.9).

Axfood has a solid balance sheet, and the business model generates stable cash flow. The aim is to maintain a strong financial position to have the scope and flexibility to invest in long-term competitiveness. The equity ratio remained in line with the Group’s target in 2025, but has been impacted by the acquisition of City Gross, which was primarily financed through increased borrowing.

Environmental targets

Sustainability-labelled sales

Axfood’s target is for the share of sustainability-labelled products to amount to at least 30% of retail sales by 2030 the latest. In 2025, sustainability-labelled products accounted for 26.6% (27.2).

Sustainability-labelled goods guide consumers to products that are made in a way that takes environmental and social aspects into account. The share of sales was slightly lower in 2025 compared with the previous year, having declined overall in recent years, partly due to consumers’ increased focus on price. The development of both the customer offering and customer meeting with regards to sustainability and health is a high priority. Axfood also helps consumers make sustainable and healthy choices through inspiration and guidance.

Food waste

Axfood’s target is to limit the share of food waste in its own operations to no more than 0.7% of retail sales by 2030 the latest. In 2025, the share of food waste was 0.9% (0.9).

Food waste occurs throughout the entire food supply chain. It is a waste of resources when food that is grown, processed, transported and packaged is thrown away. The most important measures involve optimising orders and reducing prices for products that are nearing their best-before dates or are believed to be hard to sell at regular prices for other reasons. Axfood reduced  the food waste in its own operations by 50% from 2015 to 2024 through focused efforts and a significant commitment throughout the Group, and investments to further reduce food waste are continuing.

Carbon footprint from food sold

Axfood’s target is to reduce the carbon footprint per kilo of food sold by at least 10% by 2030 at the latest (compared with the base year of 2024). In 2025, the carbon footprint per kilo of food sold was 1.95 kg carbon dioxide equivalents (2.01). Compared with the base year, this corresponds to a decrease of 3.0%.

Axfood is to promote more sustainable consumption and production of food and reduce the assortment’s carbon footprint by offering products and inspiring choices that contribute to more sustainable consumption, such as a wide selection of sustainable plant-based products. To support this transition, new affordable and sustainably produced products are continually being developed. In 2025, the carbon footprint per kilo of food sold decreased primarily as a result of a lower share of sales of minced beef, due in part to a supply shortage. There are no comparison figures before 2022 due to a lack of data.

Other sustainability targets

Axfood has a broad sustainability agenda and aims to be the leading driving force for sustainable food in Sweden. In addition to targets related to sustainability-labelled sales, food waste and climate impact from sold food, Axfood has other targets with respect to climate, biodiversity and a sustainable assortment. The Group’s targets also cover areas such as diversity, inclusion and gender equality, as well as working and social conditions throughout the entire food supply chain. At the end of 2025, Axfood applied to have its climate targets validated in line with the Paris Agreement through Science Based Targets Initiative (SBTi).