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Savings in Supermarket chain, ICA means 350 jobs to go as the jobs market gets tighter

Monday, 14 January 2013
Supermarket chain, ICA Norway has entered into a strategic cooperation agreement with NorgesGruppen and the effect of that it will results in reductions of approximately 350 employees and is expected to cost around Nkr150 million, which will be recognized in the first quarter of this year.

ICA Norway has entered a cooperation agreement with Norgesgruppen in the areas of sourcing and distribution. The agreement is an important step for ICA Norway to ensure competitive prices for Norwegian customers and achieve long-term profitability, the company writes in a press release.

The press release continues that in recent years, ICA Norway has taken many measures to improve its results. Among other things, ICA’s offering has been consolidated in two main chains, ICA and Rimi. The cooperation with Norgesgruppen is a major strategic effort.
“The changes that have recently been made at ICA Norway have been necessary, but not sufficient, steps to ensure the company’s future development. Major strategic and structural measures, mainly in sourcing and logistics, have been necessary to ICA Norway’s turnaround. The cooperation with Norgesgruppen is an important, forward-looking endeavor to eventually ensure a good customer offering and achieve profitability in ICA Norway,” says Per Strömberg, CEO of ICA AB.

According to Swedish business daily Dagens Industri, quoting Hakon Invest, the cooperation entails reductions of approximately 350 positions in ICA Norway's purchasing and logistics departments. One-time costs related to these changes are estimated at approximately Nkr 150 Million and will be charged against ICA Group's results for the first quarter of 2013. For Hakon Invest that corresponds to an impact of approximately Skr -70 million.
by Scancomark.com Team

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