Axfood's profit and profitability increased slightly in the first quarter compared to the same period last year, according to the company. The grocery retailer also reported gaining more customers. "We simply have more customers," CEO Simone Margulies said at a press conference.
Margulies noted that the entire grocery industry is experiencing positive volume development. However, she cautioned that rising fuel and energy costs are increasing for grocery retailers and could impact prices. "What we see now are increased fuel costs and increased energy costs," she said. "So there are risks that it will have an impact."
To what extent also depends a bit on how it develops going forward.
Axfood maintains that the VAT reduction, which took effect on April 1, is being fully passed on to customers. But Margulies warned that rising costs may eat up parts of the benefit. "To what extent also depends a bit on how it develops going forward," she said.
Margulies declined to comment on sales after the VAT reduction. She said the impact of rising costs will appear at different speeds on different products, with fruits and vegetables having shorter lead times than other items.
We simply have more customers.
The entire industry has a positive volume development.
Absolutely. As far as I know, the entire market has handled this very well.
What we see now are increased fuel costs and increased energy costs.
So there are risks that it will have an impact.
It will probably appear at different speeds on different products.
Some products, like fruit and vegetables for example, have shorter lead times, while there are other products that have longer lead times.