At the end of September, the interim report revealed that ICA reported growth in online sales. The group's net sales amounted to just over SEK 51 billion, an increase of five percent. Operating profit also increased to SEK 2.7 billion. Now, the grocery company is taking part of the profit to rebuild how goods are packed and shipped across the country.
Profit goes to warehouses
The idea is to gather all types of products under one roof in the future to achieve a smoother flow to retail. The company is moving from regional assignments to full-range warehouses and introducing more automation into its operations.
This is a strategic investment in ICA's infrastructure in Sweden. The investments will create conditions for increased business growth and higher cost efficiency in both stores and logistics. At the same time, the new structure contributes to a more secure supply of food and everyday goods, says Eric Lundberg, CEO of ICA Sweden.
New machines and locations
The starting signal for the reconstruction is given in Helsingborg. There, the facility will be rebuilt in three stages. The first part costs SEK 2.6 billion and involves expanding the facility and installing new technology for grocery goods.
Plans are also continuing elsewhere in the country. The company is looking at building a new facility in Västerås to cover the Mälardalen region. In addition, the company has signed an agreement to investigate a future establishment in Kungälv.
Based on what is right for ICA stores, a competitive and growing business in a rapidly changing world, we have developed a new vision for our logistics network. Increased automation and the development towards regional full-range warehouses are strategic choices for ICA's future logistics network, says Emma Lindström, Logistics Director at ICA Sweden.