Expert Challenges Swedish Competition Authority's Conclusion on Food Prices

Food prices have risen unjustifiably, according to the Swedish Competition Authority. This conclusion is now being challenged by an expert.

– The profitability in the grocery trade is very, very low in comparison, says William Lindquist from HUI – and also criticizes Nooshi Dadgostar.

A few years ago, skyrocketing food prices in Sweden were a hot topic.

Following this, the Swedish Competition Authority (KKV) began investigating the industry, and last summer the authority concluded:

Consumers often pay too much for food, and major food companies have raised their prices more than justified.

Swedish Competition Authority's Verdict on Food Prices

According to KKV, this is due to a lack of competition.

A week ago, a follow-up report from KKV stated that the grocery trade and wholesalers in the food industry have had "stable profitability" over several years, including the years when food prices rose the most.

But William Lindquist, an analyst at the Swedish trade analysis and consulting firm HUI, disagrees.

– I have read the reports and it is truly unfortunate that they contain so many inaccuracies, he tells Dagligvarunytt.

Criticism: "Not Profiting"

Lindquist notes that margins could have been higher during the pandemic years 2020–2021, when sales increased, and that food prices in Sweden have indeed risen sharply but not as much as in the rest of the Nordics.

– The correct statement is that profitability in the grocery trade is very, very low compared to other sectors in the economy. The operating margin in the grocery trade has been declining since the pandemic and fell during the inflation period, the analyst tells Dagligvarunytt.

He continues:

– This is the clearest sign that retailers have not profited economically. On the contrary, they have absorbed costs and taken financial hits to try to keep food prices as low as possible.

Criticism of Dadgostar

One of the leading voices in the debate on food prices is the Left Party leader Nooshi Dadgostar. In Almedalen, she threatened to "break up" Ica if the chain's grocery stores do not lower prices.

William Lindquist now also criticizes her.

– Nooshi Dadgostar continues to convey a distorted view of reality, he tells Dagligvarunytt, referring to the fact that Ica consists of several retailers running their own independent businesses.