We have had pleasingly stable prices during the past year or for a fairly long time, says Margulies.
Going forward, food prices are affected by the geopolitical situation, harvests, climate change, and the Swedish krona.
We hope for a more stable development, but based on these factors that affect, we might believe that it will become more volatile even going forward, says Margulies.
Fewer Buy Organic
Certain products, such as coffee, chocolate, and dairy products, have increased significantly in price. At the same time, fruits and vegetables have become cheaper. Whether prices will continue to rise is difficult to say, since both coffee and chocolate are linked to harvests, according to Margulies.
The price value has become increasingly important for consumers, and Axfood sees that the sales of sustainability-labeled products, such as organic, but also fruits and vegetables, have decreased in recent years.
We hope that, as customers may get a bit more in their wallets, the interest in sustainability-labeled products, for example organic, will come up a bit.
Strengthened Willys
With the acquisition of City Gross, Axfood has also entered the hypermarket segment – a rapidly growing segment together with low-price, according to Margulies.
Both Hemköp and Willys are strengthening themselves with volume, customer inflow, and also loyalty, she says.
Willys has performed strongly during the low-consumption period and got a boost during the inflation years – but has also grown during the high-consumption period.
Willys has never stood stronger than they stand now, says Margulies.
The food company Axfood, with brands such as Willys, City Gross, and Hemköp in its portfolio, made an operating profit of 629 million kronor for the fourth quarter, compared to 744 million the same period in 2023.
Revenues increased by 5.3 percent to 21,860 million kronor.
The board proposes a dividend to shareholders of 8.75 kronor per share, 25 öre more than the previous year.
