This is the ICA Group

ICA has several models

ICA isn’t large or small; we are both. This allows us to combine an entrepreneurial spirit with economies of scale. In much the same way, ICA consists of not just one business model, but several. But regardless of model, the value chain begins and ends with the customer. The goal is to create value every day and consistently in every link of the chain.

Retailing is ICA’s main business and the source of its earnings. It is also where our relationship with the customer is built. Our core model is independent retailers in working in cooperation, a strong driving force in which is entrepreneurship. A close relationship with, and understanding, of the local market, combined with the motivation to be profitable, creates a responsive, innovative and resource-efficient business. This in turn creates value for customers, stores, suppliers and ICA AB. Entrepreneurship is also an important driving force for our franchisees.

ICA’s revenue comes primarily from four sources. The stores, together with the goods and services supply chain, account for about 97 percent of ICA’s sales. Retail real estate and banking services account for the rest. 

 

ICA buys goods and resells them at a markup to stores in Sweden and franchises in Norway. It also generates revenue from the sale of services to stores, such as marketing communications, logistics, training and retail technology.

Earnings sources Supply chain : 56,5%

Earnings sources ICA Sweden

  • From deliveries to ICA stores.
  • From sales of services to ICA stores

Earnings sources ICA Norway:

  • From deliveries to franchise stores
  • From sales of services to franchise stores
 intakter_01


 

ICA generates revenue from royalties and/or profit distributions from Swedish stores as well as fees from Norwegian franchises. Retail sales are an important earnings source in Norway, where ICA at the end of 2009 owned about 57 percent of the stores, and in Rimi Baltic in Estonia, Latvia and Lithuania, where all the stores are wholly owned. In Sweden, ICA also generates revenue from consumers through Maxi Special, the company that sells household and leisure products in Maxi ICA Hypermarkets.

Earnings sources stores: 40,3 %

Earnings sources ICA Sweden:intakter_02

  • From Maxi Special.
  • From stores where ICA Sweden owns more than 50 percent of the shares
  • Royalties and profit distribution from stores

Earnings sources ICA Norway:

  • From wholly owned stores
  • From franchise fees

Earnings sources Rimi Baltic:

  • From wholly owned stores.

ICA AB owns many store properties. This generates revenue in the form of market-rate rents from retailers. By the time it is sold, a property has often appreciated in value, which generates again for ICA.

Earnings sources Real estate: 2,4 %

Earnings sources ICA Sweden, ICA Norway and Rimi Baltic:

  • From property management
  • From property sales
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Through ICA Bank, ICA sells financial services in Sweden. Net interest income and commissions from the bank contribute to earnings. ICA Bank also provides infrastructure, such as payment terminals and ATMs, to other companies for a fee.

Earnings sources: 0,8 %intakter_03

Earnings sources Banking

  • From sales of financial services.
  • From other companies that use the bank's infrastructure

Retailing is ICA´s main business

The stores are managed according to four business models:

“Independent retailers working in cooperation.” This is ICA’s core model, which dominates operations in Sweden.

Wholly owned stores integrated in chains. This model is applied in the Baltic countries and has dominated operations in Norway to date.

Combination of independent retailers/ integrated chain. Maxi ICA Hypermarket’s food departments are managed by independent retailers, while non-foods are run by ICA Sweden’s subsidiary Maxi Special.

Franchising. Nearly half of the stores in Norway are franchises. An increasing number of stores will be converted to this business model, which is closely aligned with ICA’s core model.

    Tipsa andra: http://www.ica.se/Om-ICA/About-the-ICA-Group/This_is_the_ICA_Group/ICA-ar-unikt/ ICA is unique