Axfood AB - Fundamental Investment Case

Negative investment case (short idea)

Axfood is a Swedish food retailer and wholesaler that operates supermarkets, food discount stores, distribution centers, and warehouses through various brands.

•Started in 1958, Axfood owns or collaborates with 13 brands including Willys, Axfood Snabbgross, Hemköp, Axfood Närlivs, mat.se,  Eurocash, Middagsfrid, Handlarn, Tempo, Apohem.se, Urban Deli, Direkten, and Dagab.
•As of Q2 2018, Axfood operates or collaborates with 1,154 stores and reportedly reaches over 4 million customers per week. There is also a focus towards developing ecommerce platforms across brands.
•As of 2016, Axfood was the second in grocery market share with 20% behind ICA with 51% and ahead of Coop with 19%.
•Through its various channels, Axfood sources products from around 1,500 suppliers who deliver around 35,000 different items.