Axfood’s business concept is to serve as a family of different concepts working together, and the vision is to be the leader in affordable, good and sustainable food. This is how Axfood creates a greater quality of life for everyone, which is the Group’s purpose. Four objectives guide the Group’s long-term development.

Work is carried out based on a strategy comprising growth-promoting and efficiency-enhancing focus areas. To promote growth, focus is on developing and offering an affordable assortment. Apart from growing sales at existing stores, key initiatives include continued expansion through more stores, the e-commerce roll-out and the establishment of new formats centrally. The Group is made more efficient through a more data-driven work approach and continued development of the logistics solutions of the future. To stay at the forefront, initiatives and activities to strengthen the culture and engagement are prioritised to attract and develop the industry’s best employees.

Axfood is to take the lead in promoting sustainable food in Sweden by taking a stance, inspiring and offering guidance for affordable, good and sustainable food.

Axfood manages and continuously monitors the Group’s operations based on a set of strategic Group-wide targets. By maintaining a strong financial position and sustainable operations, scope and conditions are created for long-term profitable growth.

 

Financial targets

Growth

Axfood will grow faster than the market. In 2024, Axfood’s retail sales increased by 6.8% (14.3), while market growth was 4.1% (7.5), according to the Swedish Food Retailers Federation and HUI Research.

With different concepts and strong market positions, Axfood has grown faster than the market for many years, both in physical stores and in e-commerce. This trend continued in 2024 despite exceptionally high comparison figures from the past two years. The acquisition of City Gross contributed to the Group’s growth.

Profitability

The operating margin will be at least 4.5% over the long term. The operating margin in 2024 was 3.9% (4.1).

Due to investments in logistics, acquisitions and initiatives to strengthen the Group’s price position in the market, the operating margin has been below the profitability target in recent years. However, investments in the base operations, together with the development of the store chains, are expected to create favourable conditions for increased profitability over time.

Financial position

The equity ratio is to amount to at least 20% at year-end. As of 31 December 2024, the equity ratio was 20.9% (23.9).

Axfood has a solid balance sheet, and the business model generates stable cash flow. The aim is to maintain a strong financial position to have the scope and flexibility to make investments that will lead to long-term benefits for the Group. The equity ratio at year-end was affected by the acquisition of City Gross, which was primarily financed through increased borrowing.

 

Environmental targets

Sustainability-labelled products

In 2024, Axfood’s target was for the share of sustainability-labelled products to amount to at least 30% of retail sales by 2025. In 2024, sustainability-labelled products accounted for 27.2% (26.7). Beginning in 2025, the new target is for this key ratio to amount to at least 30% by 2030 at the latest

Sustainability-labelled goods guides consumers to products that are made in a way that takes environmental and social aspects into account. These products are often higher in price since they are generally more expensive to produce, and in recent years, their share of sales has declined, partly due to consumers’ increased focus on price. The development of both the customer offering and customer meeting with regards to sustainability and health is a high priority within Axfood.

Food waste

Axfood’s target was a 50% reduction in food waste as a share of retail sales for the Group’s own operations by 2025 at the latest, compared with 1.7% in the base year 2015. The target was achieved in 2024 when the share of food waste was 0.9% (1.1). Beginning in 2025, the target is for the share of food waste to be below 0.7% by 2030 at the latest.

Food waste occurs throughout the entire food supply chain. It is a waste of resources when food that is grown, processed, transported and packaged is thrown away. The most important measures involve optimising orders and reducing prices for products that are nearing their best-before dates or are believed to be hard to sell at regular prices for other reasons.

Carbon footprint, food sold

In 2024, Axfood’s target was to annually reduce its carbon footprint per kg of food sold. In 2024, the carbon footprint per kilo of food sold was 2.01 kg CO2 eq (1.94). Beginning in 2025, the new target is for the carbon footprint to decrease by at least 10% per kg by 2030 at the latest compared to the base year 2023.

Axfood is to promote more sustainable consumption and production of food and reduce the assortment’s carbon footprint by offering products that contribute to more sustainable protein consumption, such as a wide selection
of sustainable plant-based products. To achieve this transition, new products are continually being developed that taste good and are affordable and sustainably produced.

Carbon footprint, own operations

Axfood will have net-zero emissions from its own operations by 2030 at the latest. This target means that emissions are to be reduced by at least 85% compared with the base year 2020 and that the remaining emissions need to be climate compensated. In 2024, GHG emissions (Scope 1, 2 and part of Scope 3) amounted to 36,926 tCO2 eq (43,030).

The climate target helps to limit GHG emissions to meet both national environmental objectives and the Paris Agreement. In 2024, emissions decreased, primarily as a result of the transition to using more renewable fuels in transports.

Gender equality

Axfood will have an even long-term gender breakdown in management positions, defined as women and men being represented within a range of 40%–60%. In 2024, the share of women/men in management positions was
52.2/47.8% (51.2/48.8).

Axfood is a values-driven company that aspires to reflect society as a whole. Axfood has an even gender breakdown in management positions and in total.

Diversity

Axfood’s target is for at least 20% of the Group’s managers to have an international background. In 2024, 17.3% (17.8) of Axfood’s managers had an international background.

Axfood endeavours to reflect the diversity found in society, and is to offer all of its employees fair opportunities to contribute and grow. Axfood strives for a broad international representation among its employees.