Axfood CEO Slams Politician's Food Price Claims as "Incorrect"

Axfood CEO Simone Margulies has strongly refuted claims made by Nooshi Dadgostar, leader of the Left Party (V), concerning food prices, labeling them as "directly incorrect." Margulies, speaking on behalf of Axfood – a major player in the Swedish grocery market encompassing brands such as Willys, Hemköp, and Citygross – emphasized the need for factual accuracy in the ongoing debate about food costs. This public disagreement underscores the sensitivity and complexity surrounding inflation and its impact on consumers and businesses alike.

The criticism comes at a challenging time for Axfood, which recently reported a weaker-than-expected first-quarter performance. The company failed to achieve its goal of growing faster than the market, with its turnover increasing by 3.8 percent against a market growth of 4.4 percent. This underperformance led to a significant drop in its stock value, with shares falling by nearly 10 percent in the wake of the announcement.

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It is directly incorrect.

While Axfood aims for robust growth, its recent results highlight the pressures facing the retail sector. Margulies's firm stance against Dadgostar's statements, coupled with the company's financial results, suggests a broader discussion is needed about the factors influencing food prices in Sweden. The company's focus remains on navigating the current economic climate while addressing public concerns about affordability.

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Axfood's goal is simple – to grow faster than the market. But they didn't manage it during the first quarter.