At ICA’s Capital Markets Day, the retailer presented prioritised step-changes, which the Board of Directors will adopt for the next three years. The step-changes will replace ICA’s previous strategic priorities.
Outlining the step-changes
The following step-changes apply to all or large parts of the business:
- Common sourcing within ICA Gruppen
- Creating business value through AI and advanced analytics
- Transformation to reduce costs and build new capabilities
- Climate beyond neutrality
They will be complemented by specific step-changes for each segment, such as strengthened food ecosystem for ICA Sweden, Apotek Hjärtat and ICA Banken.
Per Strömberg, CEO of ICA Gruppen, said, “ICA is well positioned and have taken big steps to use the potential in our group structure. But to ensure continued success in a changing business environment, and to take full advantage of our opportunities, we need to consolidate our strengths in a number of key areas. We are therefore singling out our prioritised step-changes that we will be working with during the next three years. Internally we will set targets for each area and will measure our progress every year,”.
Announcing capital expenditures
During ICA’s Capital Markets Day, it also announced that the capex level for 2020 is expected to be SEK4 bn (US$424 m) and that capital expenditures for 2019 are expected to total SEK3.3 bn (US$350 m). Capital expenditures for 2019 are slightly lower than ICA’s previous estimate due to phasing effects.
ICA Sweden: 10-15 store openings per annum
The Group said that ICA Sweden would continue investing in its store network, by opening 10-15 new stores and renovating around 250 stores every year. It will also trial a new store concept, ICAnders, in central Stockholm. The pilot store will be used to test how new meal solutions are received by shoppers and inspire ICA stores.
Following the announcement of its partnership with Ocado in 2018, ICA will open an automated customer fulfilment centre (CFC) in Stockholm in 2022. The first pilot for an Ocado-powered solution will be launched in autumn 2020.
Rimi Baltic: 16-18 store openings in 2020
Meanwhile in the Baltics, Rimi will continue expanding the store network, with 16-18 store openings planned in 2020. It said it is on track to operating 100 stores in Lithuania by 2023. The new, main warehouse in Riga is expected to be completed by Q3 2020 and ecommerce will be rolled out in Estonia and Lithuania in H1 2020.
Sustainability: climate neutral by 2020
In other news, ICA has committed to being climate neutral by 2020 and reducing 70% of emissions through its own actions. In addition, the Group will develop an extensive range of sustainable products and reduce food waste by 50% by 2025.