För Ica Sweden, which includes the food business, the profit fell by 28 percent to 859 million kronor during the first four months of the year. Revenues increased by 5.8 percent to 36.6 billion kronor.
In the report, the profit drop is explained by "price investments," which in plain language is about price pressure.
We have invested a lot in prices during the past period and we will continue to do so because it is a turbulent external environment and we want to give back to our customers, says Nina Jönsson.
Continued price focus
She says that in the quarterly report, there is no effect of the consumer boycott of the major food chains that was carried out for a week in the spring in protest against the rising food prices.
No, not directly. But our customer visits continue to increase, not least among families with children. And even if customers buy relatively cheaper food than before, we see that customers now choose to spend more money on certain products, such as Swedish and local products, which we have invested a lot in, says Nina Jönsson.
The focus of the food business forward is also about continuing to dampen cost increases.
We see that customers have it tough again due to the high inflation rate that was during the first part of the year at the same time as it is turbulent in the world, says Nina Jönsson.
Not a low-price chain
She also says that she believes that the price pressure is something that has come to stay.
The important thing is that we do not pass on all price increases, we will invest in keeping prices low.
But will a continued focus on lower prices in the long run position Ica as a low-price alternative for food?
No, I would not say that without Ica being for everyone and we have the market's broadest range and Ica shopkeepers set their own prices. So we will definitely have competitive prices, but we will also have a broad offer, says Nina Jönsson.
Facts: Ica Gruppen quarterly report
TT
Ica Gruppen, including banking and pharmacy business, made a profit for the first quarter, January-April, of 1,483 million kronor, compared to the profit of 1,826 million kronor for the same period last year. Revenues increased by 5.5 percent to 45.2 billion kronor. For Ica Sweden, which includes the food business, the profit fell by 28 percent to 859 million kronor. Source: Ica Gruppen
