Frank Murray, Scandinavia Manager, Bord Bia

In the current price conscious retail environment, ICA – Sweden’s premier retailer - appears to have struck the right balance between offering keen prices and quality. With 51% retail market share it has reported an increase in operating income of 37% for the third quarter of 2009. For the first 9 months of 2009 ICA net sales are 4.8% ahead of the corresponding period in 2008 while operating income increased by 11.4%.

ICA Sweden: According to the company, the strategy of providing customers with quality products and low prices have both contributed decisively to the increase in sales. The spike in operating profit was not only due to this but to a reduction of costs & better margins in non-foods.

Norway & the Baltic’s: In Norway, ICA has been in negative earnings territory for several years but Q3 results this year showed an improvement. Their operating loss was reduced significantly due to a curtailment of shrinkage (waste), higher store sales and increased profit margins.

In the Baltic’s the economic environment is weighing heavily on profit margins. Here ICA has Rimi & Netto discount stores. Recently, it has modernised 90 of its Supernetto stores and at the same time it has implemented cost reduction initiatives.