ICA Sverige AB. Anders Svensson, CEO

Transcription

1 ICA Sverige AB Anders Svensson, CEO

2 Market leader in Sweden for 47 years 11.5 million customer visits per week Market share 36.7 % Store sales SEK 98,272 million Net sales SEK 65,750 million 1,330 stores 7,229 employees (excl. stores) Store sales have increased more than the market for 10 consecutive quarters 2012 figures

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4 The ICA idea is unique Independent retailers in co-operation, who successfully combine diversity and local adaptation with large-scale operations and efficiency.

5 ICA Sweden main supplier to ICA retailers Brands and marketing Product range development and sourcing Support for store operation Logistics Establishment and upgrades Retailer recruitment New business Our unique expertise is to encourage the entrepreneurial spirit and meet customer expectations through dialogue and collaboration

6 ICA Sweden s earnings via business model The model provides incentive for ICA Sweden to promote sales and earnings in stores Income from stores via ICA contract 24% Sale of services to stores 2% Supply of goods to stores (wholesaling) 74%

7 ICA idea overview systems and flows Ownership Membership Other owners Dividend Member service 10,000 external suppliers Goods and services Cost reimbursement and profit ICA retailers Consumers External suppliers

8 Invoicing of cost reimbursements and profits from ICA to stores is governed by the business model Mandatory Optional Profits Common organisation aka. ICA Subscription Based on store sales (%) Market priced supplementary services e.g. accounting and marketing Wholesale profits Based on wholesale sales (%) Logistics charges Based on wholesale sales (%) Cost-based supplementary services e.g. store IT ICA contracts Royalty/Profit sharing Royalty based on store sales (%)

9 Stable development of sales and operating profit Sales, SEKm Operating profit, excl. non-recurring items, SEKm

10 The store

11 Stores which meet customer needs daily, weekly and lifelong Number of stores: 77 Sales: SEK million No. of items: Number of stores: 121 Sales: SEK million No. of items: Number of pharmacies: 56 No. of items: Number of stores: 431 Sales: SEK million No. of items: Number of stores: 688 Sales: SEK million No. of items: Number of stores: 4 No. of items: Sales Number of stores at 30 September 2013

12 Continued strong sales in Swedish ICA stores Store sales July-September 2013 January-September 2013 SEKm Change all stores Change likefor-like SEKm Change all stores Change likefor-like Maxi ICA Hypermarket % 3.6% % 3.5% ICA Kvantum % 2.2% % 2.3% ICA Supermarket % 3.5% % 3.6% ICA Nära % 3.7% % 2.8% TOTAL % 3.3% % 3.1% Performance compared with same period 2012

13 Market shares of ICA stores and competitors* Other sales channels 18% Other grocery stores 9% ICA 36% Lidl/Netto 4% Bergendahls 5% Axfood 13% Coop 15% * 2011 figures according to Source: SCB/HUI and magazine Market 2012

14 Greater Malmö Greater Gothenburg Greater Stcokholm Tyresö ICA has bigger shares in rural areas but smaller shares in conurbations Lidköping Karlsborg Vänersborg Tibro Sotenäs Skövde Lysekil Skara Grästorp Uddevalla Orust Trollhättan Essunga Vara Hjo Stenungsund Lilla Edet Falköping Tidaholm Tjörn Kungälv Ale Alingsås Vårgårda Herrljunga Mullsjö Habo Lerum Jönköping Öckerö Göteborg Partille Bollebygd Borås Ulricehamn Sala Härryda Mölndal Knivsta Norrtälje Kungsbacka Mark Svenljunga Tranemo Vaggeryd Västerås Enköping Håbo Sigtuna Vallentuna Varberg 941,530 population (average 2012) Perstorp Åstorp ICA s market share 2011: 32.93% Klippan Helsingborg Bjuv Hässleholm Falkenberg Östra Göinge Gislaved Bromölla Gnosjö Karlshamn Värnamo Sölvesborg Eskilstuna Strängnäs Upplands Väsby Österåker Upplands-Bro Täby Sollentuna Järfälla Danderyd Vaxholm Sundbyberg Lidingö Ekerö Solna Värmdö Nacka Stockholm Salem Huddinge Nykvarn Botkyrka Södertälje Haninge Kristianstad Flen Gnesta Svalöv Höör Katrineholm Nynäshamn Landskrona Trosa Eslöv Hörby Nyköping Kävlinge Lomma Burlöv Staffanstorp Malmö Svedala Lund Sjöbo Tomelilla Simrishamn Oxelösund Norrköping 2,052,800 population (average 2012) ICA s market share 2011: 29.57% Vellinge Skurup Ystad Trelleborg 604,472 population (average 2012) ICA s market share 2011: 30.20%

15 Store network one of our most valuable assets New store openings Exterior changes and profile changes Format & concept development 1,330 stores throughout Sweden More than 200 stores upgraded every year

16 Establishment process and retailer career path Retail survey Retailer recruitment Employed/ independent

17 ICA contract at establishment Example ICA finances new establishment Store operated as subsidiary When initial losses and structural costs including interest have been repaid the retailer can acquire the store at book value After the retailer has acquired the store a royalty and in some cases profit share is paid to ICA. Retailer is obliged to offer ICA first refusal for store at a predetermined value.

18 ICA contract allocates earnings Example from an actual Kvantum SEK thousand ICA s share of store earnings Retailer s share of store earnings

19 But ICA also makes money on sales to stores Example from an actual Kvantum SEK thousand ICA s wholesale profits ICA s share of store earnings Retailer s share of store earnings

20 Planned establishment 2014 Barkarby, Järfälla, May Gnista, Uppsala, Oct Tybblekullen, Örebro, Nov Sjöstaden, Stockholm, April Älvsbyn, Sep Kramfors, Oct Mönsterås, Oct Farsta, Stockholm, May Stabby, Uppsala, April

21 Closest to customers

22 Driving forces and customer trends To feel well To be smart To feel secure To be good To be myself To have fun Healthy & natural Digital & analogue Simple & convenient More older people Urbanisation Multi-cultural Eating out Technology Public health problems Fun & enjoyable Affordable & smart Open & honest Sustainable & local Personal & engaging Source: SCB, Restaurant Index, Internet and Swedes, Swedish National Institute of Public Health.

23 Priorities ahead Vision We will make everyday a little easer Strategic themes Strengthen customer loyalty & brand position Strenghten & expand our customer offering Optimize and broaden our sales channels Simplify our business Engage & develop our people Excel in corporate responsibility ICA Sweden 2014 Loyalty/CRM Price PL Fresh Digital Dialogue with retailers Efficiency Leadership & values Health

24 A wide range is fundamental Items for all tastes and pockets

25 Price focus value for money Discount range in all stores Good implementation of pricing strategies Price and range ladder Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

26 Our private labels: quality, choice and a good price Objective: customer s first choice Active and emotional choice Advantages for customer Lower price Assured quality Unique items Advantages for store Profitability Unique items Assured quality Advantages for ICA Strengthens the brand Profitability Bargaining power

27 Fresh foods drive sales and position Seasonal thinking and innovative meal solutions

28 We want to make it easy for customers to live healthily

29 The brand

30 ICA s Good Business: to meet customer expectations for transparency, quality and food safety Key for accountability: Transparency Morals and ethics Food safety Animal welfare Local products* * Source: ICA Customer CR Survey, Feb Ipsos.

31 Strongest retail brand in Europe Sweden: Spain: 4.3 Switzerland : 4.2 4: Bulgaria: Netherlands: Romania: Slovakia: 3.2 8: Portugal: 3.4

32 ICA Stig concept a strategic business tool

33 National and local marketing ICA-wide Profile ICA stores TV Buffé monthly magazine ICA.se DR CSM Billboards In-store TV Local advertising Mail shots

34 Our digital communication today ICA s apps have been downloaded a million times ICA.se Sweden s largest food site with a millions visits a week 200,000 fans on Facebook, Sweden s 7th largest company ICA is most visible on Google Commercials shown five million times a year on YouTube ICA In-store TV reaches 8.2 million customers per week ICA Play

35 4.1 million active customers in our loyalty programme

36 Customer database foundation for customer insights and CRM ~70 % of ICA s sales value identifiable % Unidentified sales Identified sales Name Personal ID number Gender Address Store Time Products Purchase sum Payment method Customised offers Adapted to local retailer Customer-driven approach

37 Online focus A comprehensive ICA experience Store Collection Online Home delivery We want to maximise availability to customers by combining stores and online sales

38 Market s best online offering over time Launch to start in autumn 2014 Services Food Cura pharmacy 19 Non food Channels Kanaler New business Banking services

39 Local presence online as well Primarily in-store picking and collection

40 Value chain Efficient, flexible and sustainable SOURCING Sourcing from 2,500 suppliers worldwide. Many are ICA s private label products. WELL-FILLED SHELVES ICA s automatic order system ensures there are never gaps on the store shelves. WAREHOUSE OPERATIONS Daily deliveries to ICA s 6 warehouses. TRANSPORT Lorries drive a total of about 100,000 km per day and deliver to approximately 1,300 stores in Sweden. ITEM PICKING Every day 950,000 cases are picked for onward delivery to the stores. Automation is increasing.

41 Customer focused logistics chain world-class More efficient, higher quality and lower environmental impact BORLÄNGE DP Umeå UMEÅ DC Borlänge KUNGÄLV BORLÄNGE KALLHÄLL/ ÅRSTA HELSINGBORG Fewer warehouses KUNGÄLV BORLÄNGE KALLHÄLL/ VÄSTERÅS HELSINGBORG but more distribution points DP Örebro DC Kungälv DP Västerås DP Uppsala DC Kallhäll DP Stockholm Syd DC Helsingborg (via DP as previously not shown)

42 Both invest in the customer offering and develop profitability Retained /increased profitability Cost efficiency Increased volume Develop customer offering More and increasingly loyal customers Lower consumer prices