Net sales climbed a marginal 0.9% to 23.20 billion kronor, yet the company’s core retail segment grew by only 2.1%. This performance fell short of the 3.7% growth observed across the wider market, undermining Axfood’s stated goal of consistently outperforming its competitors. Chief Executive Simone Margulies attributed the stagnation to a combination of food-price deflation, a difficult calendar, and high-bar comparisons from the previous year.

Internal performance proved inconsistent across the firm’s portfolio. While the Hemkop chain delivered a solid 7.4% increase in sales, the discount-focused Willys brand saw comparable-store sales slip by 1%. Meanwhile, the City Gross hypermarket chain continues to struggle with declining revenue, though the brand managed to narrow its operating losses following its recent acquisition. Investors remain wary, pushing the stock down 21% year-to-date as the company attempts to regain its competitive footing.