Axfood has successfully acquired City Gross, enhancing its presence in the supermarket segment with expectations of significant growth and profitability improvements by 2026.

Target Information

Axfood, a prominent player in the Swedish grocery market, has established itself with distinct and robust concepts that enable effective navigation through shifts in consumer behavior and a changing market landscape. In 2024, despite high comparison figures, Axfood managed to gain market share, particularly enhancing its presence in the supermarket segment through the acquisition of City Gross. The retail sales growth during the fourth quarter reached an impressive 14.1 percent, underscoring customer influx, loyalty, and volume growth as key drivers of long-term growth and profitability within the grocery sector.

This growth occurred in a market characterized by cautious and price-sensitive consumers, alongside intense competition that placed pressure on gross margins. Axfood's focus on productivity and cost efficiency has intensified, providing a solid foundation for gradually enhancing its competitive edge over time.

Industry Overview in Sweden

The grocery retail industry in Sweden is experiencing significant transformation, driven by shifts in consumer preferences, heightened competition, and the growing demand for low-priced offerings. Established players like Willys and Hemköp have stre