For the eleventh consecutive year, we summarise a year with increased market share by leveraging the strength of our entire business model. We continue to challenge and are reporting also for the last quarter of the year above-market growth. We are preparing for the future and investing in strategically important areas to continue attracting more customers, become even more efficient, and strengthen our competitiveness.
At Axfood, our business model is a source of strength, and this creates both
opportunities and competitive advantages. With our strong and distinctive
concepts and affordable offerings, we meet the needs and preferences among
our more than six million customers each week, and create agility and drive
through collaboration in base operations.
Over the past year, we successfully navigated a market characterised by
intense competition and price-conscious consumers. We are summarising a
strong fourth quarter with a continued positive trend in customer traffic and
increased volumes. Growth in retail sales was 8.7%, and 5.3% excluding City
Gross, while the market grew 4.5%. We have thus outperformed the market
every quarter this year, and are reporting our eleventh consecutive year of
market share gains.
Strong growth in all store chains
Willys once again grew more than the market, with growth of 5.4% in the final quarter of the year, driven by a continued positive volume trend as a result of high levels of customer traffic and loyalty. Willys has experienced good momentum for a long time and has excellent potential to expand in order to reach more consumers. The aim is to open at least ten new Willys stores annually in the coming years, while also continuously creating an even better customer experience in existing stores through continuous upgrades to the new Willys 5.0 store concept. Hemköp also gained market share in the fourth quarter, with growth of 5.3%. Overall, the chain improved its position in 2025 through a high pace of store modernisation and continuous development focused on price value, sustainability, fresh products and meal solutions.
The City Gross hypermarket chain, which we acquired just over a year ago, is in the midst of a significant transition. During the year, intensive and diligent work was carried out to clarify the store concept and brand, improve the customer offering, implement a chain management structure and streamline operations. In seasonal terms, the fourth quarter of the year is generally a strong quarter for hypermarket operators. City Gross continued to progress in a positive direction, with good like-for-like sales growth, a lower cost level and positive earnings. We took important steps during the year, and continue to work according to plan to strengthen the chain and turn it into a long-term competitive player in the hypermarket segment.
Snabbgross delivered growth of 6.0% in the quarter. Initiatives to strengthen the chain’s price position and drive volume growth had a negative effect on the earnings development in a highly competitive market.
Positive sales growth increased earnings
We report a strong earnings trend and an increased operating margin in the fourth quarter, mainly driven by our impressive sales growth. We also continued to focus on operational efficiency, quality and performance in all processes.
Solid cost control and realised cost savings also contributed to increased
earnings during the quarter.
Increased capacity and efficiency in the supply chain resulting in growth
Dagab developed the Group’s assortment of affordable, good and sustainable
food during the year, with a continued focus in the fourth quarter on ensuring
that our chains can provide Swedish consumers with a competitive offering. Along with our new high-bay warehouse in Backa and the automation of our fruit and vegetable warehouse in Landskrona, our new logistics centre in Bålsta has significantly increased the Group’s capacity and efficiency. We continue the work to further optimise our new logistics structure.
We have initiated our next major investment in the establishment of a new highly automated logistics centre in Kungsbacka in order to strengthen the supply of goods in southern Sweden. In the fourth quarter, we entered into an agreement with Witron regarding the investment in automation. We are continuing to build for the future, and this new logistics structure will create the conditions for us to continue to grow and become even more competitive.
Important steps related to energy and climate
During the quarter, we completed the transition to fossil-free transports, both in
our own and in procured transports. I am proud that we as a Group have chosen
to join forces and take the lead in reducing emissions. Another highlight during
the year was the deployment of Sweden’s largest solar park in Hallstavik, which
Axfood was part in establishing. The solar park will make our own energy supply
more predictable and help to create better conditions for society’s green transition. At the end of the year, we applied to set science-based targets in line with the Paris Agreement through the Science-Based Targets initiative (SBTi). At Axfood, we have a highly ambitious agenda when it comes to sustainability and health, and we are not slowing down.
Well positioned to continue to challenge
We are confident about 2026. Axfood operates in a market that continues to be dominated by a strong focus on low price and price value, and our aim is to continue to grow more than the market.
To enable even more people to shop with us, we are maintaining a high rate
of new store establishments. Our ambition for 2026 is to expand the store
network by 10–15 new Group-owned stores.
We are continuing to invest in our business to strengthen our competitiveness and create value for all our stakeholders. In 2026, these investment needs are expected to amount to SEK 2.2–2.3 billion. We are summarising a quarter and year in which we attracted a growing number of customers, with increased loyalty and stronger positions in all market segments. Based on great commitment and passion for food in the entire Group, we are leveraging the strength of our business model.
Simone Margulies
President and CEO Axfood
