Elizabeth Darcy, Stockholm Office, Bord Bia – Irish Food Board
Internet retailing has seen year on year growth in Sweden and grocery retailers are taking note. A multi-channel approach has been developed by all major retailers where online stores have typically supplemented bricks and mortar store sales. However, we may see a role reversal here in the future where online takes precedence.
ICA is Sweden’s largest retailer by market share at 41.1% and has been a strong player within the traditional store-based retailing space to date (IGD Retail Analysis Sweden, 2018). However, the grocery retail shopping tide has turned and ICA have responded by recently partnering with Ocado, the UK’s online store business model. The agreement will see ICA upgrade its current online offering by improving the efficiency of their grocery e-commerce channel with a future view of improving other product areas.
CEO for ICA Gruppen, Per Strömberg stated that this move will lay the foundations needed to achieve their “digital ambitions for all of ICA Gruppen” so that they can lead the way for both online and offline retailing in Sweden. ICA will make the changeover during 2021, with their highly automated warehouse completed by 2022. Ocado have agreed exclusivity to ICA in Sweden and the Baltic countries, provided certain growth targets are achieved. Full article here.
Growing the online channel is also a priority for other top retailers in Sweden. Coop and Axfood who currently hold a market share of 16.2% and 13.3% respectively are developing their online presence.
Therefore, Irish producers familiar with operating online, (particularly with Ocado) will be at an advantage here in Sweden. It is crucial going forward that online distribution forms an integral part of a company’s route to market strategy. With this in mind, is your product offering online ready and attractive to the eye to compete with local players?
For more information, please contact elizabeth.darcy@ucdconnect.ie
