New store openings have driven strong first-quarter sales and profits gains at Swedish retailer Axfood, the company said today (20 April).
Axfood said that net profit rose 6.7% to SEK174m (US$24.3m) in the three months ending 31 March.
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Sales gained 6.9% during the period, climbing to SEK8.21bn. At company-owned outlets, sales increased 3.4% and like-for-like sales rose 2.4%, the group added.
Looking to the remainder of 2010, Axfood said that it expects to drive continued sales growth as well as an improved operational performance.
“During the remainder of 2010 we will maintain a high pace of establishment and change, further develop our concepts, optimise store operations and stimulate sales growth,” CEO Anders Stralman said.
Axfood also indicated that it would focus on the development of its own-label products during the year.
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By GlobalDataA spokesperson confirmed that there are currently “a number” of product launches in the pipeline, with own label expected to drive both sales and margin improvements.
