Axfood summarises a strong second quarter, with growth significantly outperforming the market. Thanks to affordable and attractive offerings, more and more consumers are choosing to shop with us. Moreover, investments in automation and logistics in recent years are having a positive impact on the Group’s efficiency and competitiveness. Strategic initiatives are also under way to further strengthen the Group’s market presence and the position of the store chains.
Axfood summarises a strong second quarter, with growth significantly outperforming the market. Thanks to affordable and attractive offerings, more and more consumers are choosing to shop with us. Moreover, investments in automation and logistics in recent years are having a positive impact on the Group’s efficiency and competitiveness. Strategic initiatives are also under way to further strengthen the Group’s market presence and the position of the store chains.
The market continues to be very competitive in all segments, and customers' purchasing behaviours continue to be dominated by a strong focus on price value. We are convinced that this is a dynamic that will continue given consumers’ increased price awareness. Backed by our model of different concepts working in collaboration, combined with a broad and affordable assortment, we are well positioned to continue navigating a dynamic market.
Outperforming market growth, driven by the discount chain Willys
It is clear that a growing number of consumers are choosing to shop with us. Axfood grew significantly more than the market in the second quarter, primarily driven by Willys with the business concept of offering Sweden's cheapest bag of groceries. Retail sales increased 23% in total, or 9% excluding City Gross which was acquired in November last year. Overall market growth amounted to 6%, with a positive calendar effect of just over 1%.
With its strong position as Sweden's most recommended food retail chain, Willys reports strong growth in the quarter that was higher than the market growth on both a total and like for-like basis. In all, Willys’ sales increased 10%, driven by continued positive volume growth due to high customer traffic and customer loyalty. Hemköp reported a good performance in the traditional grocery segment with growth of 6%, and Snabbgross continued to successfully navigate a weak restaurant and café market, also delivering 6% growth.
City Gross has great potential and gives us presence in the hypermarket segment, an attractive market segment that the Group has not previously been present in. Growth for the quarter amounted to 3%. This year marks a year of transition, and we are working according to our plan to strengthen the store chain for the future and achieve profitability at some point in the second half of 2026.
High rate of activity at Dagab
With both Easter and Midsummer taking place during the quarter, Dagab is summarising a good quarter with large volumes, improved productivity and increased market investments to support its customers. Work also continued to optimise processes and flows at the highly automated logistics centre in Bålsta, which has been fully operational since the spring. As previously communicated, Dagab is also planning for the next stage in the development of the logistics structure in order to create even more capacity and further improve efficiency in southern Sweden from 2030.
Increased growth and efficiency gains contribute to improved competitiveness
With a significant increase in customer traffic, high growth and logistics efficiency improvements, the Group's earnings increased. Efficiency and a focus on costs in purchasing and internal processes continues to be important priorities for us to enable market
investments, both in the store chains and in Dagab, and in an affordable and attractive offering for our customers. Initiatives to improve the efficiency of our support functions were implemented during the quarter. The efficiency gains will lead to annual cost savings of approximately SEK 80 m from 2026, creating the conditions for the Group to continue investing in price value and enhancing its competitiveness.
Further steps to contribute to the climate transition
Renewable energy is an important area when it comes to reducing our carbon footprint. During the quarter, we officially opened Sweden’s largest solar park, located in Hallstavik in the Uppland region, which we established in collaboration with the solar energy company Alight. While our electricity mix has consisted almost exclusively of Swedish renewable energy for a long time now, the new solar park has enabled us to add additional capacity to the grid. This will help to create better conditions for the green transition, while also making our own energy supply more predictable.
The phase-out of fossil fuel in the Group’s transports continued during the quarter through an increased use of renewable fuels. Emissions from own transports decreased significantly, down 20% compared with the preceding year.
A strong quarter with significant customer traffic
We summarise a strong quarter in which we grew more than the market and continued to attract both existing and new customers. We are seeing positive momentum in Willys, Hemköp and Snabbgross, and are working to improve City Gross. Our base operations have become more competitive thanks to our new logistics platform, and we continue to maintain a high tempo in our strategic initiatives in many areas. We have a high ambition level and development rate in order to further strengthen our positions – always with the customer meeting in focus.
Simone Margulies
President and CEO, Axfood AB
