Swedish discount growth slowest in the Nordics

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Ica gained most market shares in the Swedish grocery trade last year.
But Lidl increased the most in percentage, and is now taking aim at the five percent limit.

Ica had 50.8 percent of the Swedish daily consumables sales in 2014. That is an increase of 0.25 percent from 2013. Bergendahls increased second-most by 0.14 percent. This shows the compilation made by the Grocery Manufacturers Association, DLF.

Coop and Axfood both lost market shares.

Discount segment is growing, but with the slowest pace in Scandinavia. Netto took a little bit of the cake and now has 2.3 percent of the market with a turnover of 4.4 billion SEK, while Lidl rose 0.05 percent and is now 3.6 percent. Both these figures are estimated by DLF.
Lidl, however, increased last year its turnover in Sweden by 11 percent to 8.6 billion. And for the third year in a row yesterday chain profit. CEO Conor Boyle is aiming to reach even higher.

“If we grow at the same pace we reach the 5 percent market share in 2020, I think that’s realistic,” he tells Dagens Industri.

When Lidl arrived in Sweden the store range was about 800 products, of which few were Swedish. Today, a Lidl store offers about 2,000 items including promotional goods and, many fresh products are Swedish. The strategy is to cover 95 percent of what customers need.

“We have adapted to what the Swedes want. But we’re not done, we will develop even more Swedish goods and even more organic products, “said Conor Boyle.

They have also learned much from the initial mistakes around the brand.

Once customers accept us, then it will go fast, “said Conor Boyle to Dagens Industri.

Consumables sales in Sweden
Market share 014 (change from 2013)
Ica 50.8% (+0.25)
Coop* 20.5% (-0.37)
Axfood 15.8% (-0.10)
Bergendahls 7.0% (+0.14)
Lidl* 3.6% (+0.05)
Netto* 2.3% (0.01)
Source: DLF

* estimated figures