Axfood (AXFO) CMD 2025 summary

Strategic direction and market positioning

• Focus on leveraging a house of brands and integrated operating model to address diverse consumer needs and drive growth across all market segments in Swedish food retail.

• Clear ambitions towards 2030 include expanding and optimizing the store network, achieving world-leading operational efficiency, and maximizing business value through digitalization, automation, and AI.

• Broad market presence with nearly 400 group-owned and 260 retailer-owned stores, plus e-commerce, serving over 5 million customers weekly.

• Strong presence in discount, traditional grocery, and hypermarket segments, with Willys, Hemköp, and City Gross as key brands, each with tailored strategies for growth and customer engagement.

• Emphasis on sustainability, health, and stakeholder value, with targets for reduced food waste, lower carbon footprint, and increased share of sales from sustainability-labeled products.

Brand and concept development

• Willys continues to lead the discount segment with accelerated store expansion, aiming to open at least 10 new stores per year and upgrade over 20 stores to the Willys 5.0 concept in 2025, supported by strong brand equity and the Willys Plus loyalty program.

• Hemköp outperforms peers in traditional grocery, focusing on price value, fresh produce, meal solutions, and sustainability, with a hybrid model of group- and retailer-owned stores and a goal to lead in every local market by 2030.

• City Gross, as a hypermarket challenger, is undergoing a turnaround with new management, operational efficiency initiatives, and a new store concept launching in 2026, targeting profitability in the second half of 2026.

• Snabbgross seeks to become Sweden's most affordable restaurant wholesaler by 2030.

• Private label share of sales has grown to 33%, with continued potential for expansion, contributing to differentiation and profitability.

Technology and digital transformation

• Ongoing digital transformation includes investments in unified commerce, automation, AI, and scalable IT infrastructure to enhance efficiency and customer experience.

• Over 100 AI models have been implemented to enhance processes, workflows, and customer interactions.

• AI and data analytics are embedded across the value chain, from assortment planning and logistics to personalized customer engagement and campaign planning.

• Partnerships with technology providers and cloud-based solutions have improved business agility and cost efficiency.