Scandinavian retail group ICA, which is 60% owned by Dutch retail giant Ahold, has announced plans for a new operational organisation in an effort to attain or maintain a leading market share in each country where it operates.
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ICA said the organisation that provides support to its stores will be streamlined and will adopt a more effective approach. Around 500 positions are to be cut – 400 in 2005 and 100 in 2006. The cost-savings from this streamlining will be approximately SEK1bn (US$149m) annually, the company said.
“We are going to coordinate more on the Nordic level to be more efficient and cut costs. Closest to the stores, we will have efficient operating companies focusing on store operations, sales and establishing,” said Kenneth Bengtsson, president and CEO of ICA.
Bengtsson said tougher competition in Sweden, Norway and the Baltic countries is developing largely around the discount segment, but ICA aims to compete on price in 2005.
“ICA and RIMI stores will offer prices on staple items rivalling those of the discount chains, while maintaining high quality in, for instance, fresh foods,” he added.
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By GlobalDataThe company also announced that senior vice president and director of establishing, Peder Larsson, has been named COO of ICA Sverige, the Swedish operating subsidiary of ICA. Larsson, who will join ICA’s executive board and report to ICA CEO Bengtsson, succeeds Per Uebel, who has chosen to leave ICA.
