Swedish retailer Axfood has bought small Stockholm grocer PrisXtra for an undisclosed sum.

The deal, announced yesterday (5 December), was described by Axfood CEO Anders Strålman as an "important step" for the company.

"The acquisition gives us a third store concept in addition to Willys and Hemköp and considerably strengthens our position in the Stockholm area with its high purchasing power," Strålman said.

Family-owned PrisXtra, which generates annual sales of around SEK700m (US$108.6m), will operate as a separate company and CEO Magnus Lundin will stay on to lead the business.

Lundin said: "I am glad for PrisXtra's sake. PrisXtra is currently Sweden's most successful urban concept and the sale to Axfood gives PrisXtra enormous opportunities for future growth."