Danes with international growth ambitions
Swedish ICA has shelved its international ambitions and will only concentrate on the domestic market for the near future. Danish Salling, on the other hand, is focusing both internationally and on the home market.
The competition authorities have given the green light for Salling Group’s purchase of Coop stores in its home country.
However, not all 35 stores that were originally included in the purchase agreement around Christmas 2024 will change hands, but from Salling’s perspective 33 is fairly good too: twenty-five 365 discount stores will change hands together with one Kvickly and five SuperBrugsen. All these will change to Netto or Føtex.
“We are of course pleased with the authorities' approval of the agreement,” says CEO of Salling Group, Anders Hagh.
Salling Group's strategy – Aspire '28
«The acquisition is a major step towards achieving our strategic goals with ASPIRE28. Salling Group must continue to grow where possible, and acquisitions both domestically and internationally have a high priority and will contribute to creating an even more robust Salling Group. Therefore, we will continue to seek out new opportunities,» Hagh continues.
Salling Group has a nearly 120-year-long history[i], and as the country's largest grocery group it is significantly raising ambitions. The business strategy, ASPIRE '28, includes goals for more stores, acquisitions, and mergers in existing and new markets, including the acquisition of ICA's operations in the Baltics.[ii]
Salling group stores
Salling Group has the following number of grocery stores in the mentioned regions:
Denmark
- 553 Netto stores
- 112 Føtex stores
- 19 Bilka stores
Poland
- 676 Netto stores
Baltics
- 314 stores under Rimi Baltic in Estonia, Latvia, and Lithuania.
Germany
- 341 Netto stores.
“We are strengthening the core business in Denmark, Germany, and Poland. The historically largest growth engine, the Danish market, will remain robust through investments in new stores and operations, while all German stores should be updated to the latest Netto concept,” Hagh concludes.
In Poland alone, Salling aim to expand from 676 to 1,000 Netto stores, no doubt making them one of the most aggressive players in the grocery market in the Nordics and Europe today.
Significant acquisitions and mergers in the European market are intended to make Salling more robust. In addition, growth ambitions include an innovation fund – Salling Seeds – which will have a dedicated investment pool of half a billion DKK for startups and small businesses focusing on technology, sustainability, and retail. More details are yet not revealed.
Sources: Salling Group, NHH, Börsen.
[i] 100% owned by Købmand Herman Salling’s Foundation and Købmand Ferdinand Salling’s Memorial Foundation – which together form the Salling Foundations. This means that the profits from Salling Group goes to two purposes: investments in the company and donations through the Salling Foundations.
[ii] Featured in NHH Food in March this year.