Ica Group, which also includes pharmacies and real estate operations, made an operating profit of 2,109 million kronor during the period May-August, compared to the profit of 2,833 million kronor for the same period last year. Revenues increased by 4.4 percent to 48.6 billion kronor.
For Ica Sweden, which includes food retail, the operating profit fell from 1.5 billion to 1.3 billion kronor. The market share compared to competitors remained roughly unchanged, says the Ica CEO.
According to Nina Jönsson, this is due to "price investments" and double bonus checks for customers.
What do you mean by price investments?
It's our investment in lower prices on everyday items.
Ica Sweden conducts wholesale trade, acts as an umbrella for the stores. When Ica Sweden says that you make price investments, do you take the hit for the individual stores then?
It works so that there are lowered prices here in the wholesale trade, then it's up to the individual Ica stores to follow, says Nina Jönsson, who says that the stores have also pressed prices as a result of this.
Aside from the announced food VAT reduction in April next year, the trade is also a winner of the government's proposal to reduce employer contributions for young employees.
It reduces our costs, which means that we can continue to invest in prices, she says.
