Coop Nord Reports Profit Amid Struggles for Coop Sverige

Coop Nord, the fourth largest cooperative grocery chain in Sweden, is showcasing remarkable profitability against a backdrop of significant losses faced by its parent organization, Coop Sverige. In the last fiscal year, Coop Nord recorded an operating profit of 32.2 million SEK, a bright spot in stark contrast to Coop Sverige’s staggering aggregate loss of 1.6 billion SEK.

Under the leadership of CEO Henrik Skyttberg, who has led the organization for nearly five years, Coop Nord has successfully expanded its operations across northern Sweden, currently managing 85 stores in regions such as Jämtland, Västernorrland, and Västerbotten. Plans for further expansion include the introduction of additional Stora Coop locations in Umeå. Skyttberg attributes the cooperative's healthy performance to strong local management and strategic focus on store operations, stating, "Allt avgörs här på butiksgolvet" (Everything is decided here on the shop floor). Moreover, Coop Nord’s market share stands at an impressive 27%, significantly higher than the national average of 17%.

However, amidst this growth, Coop Nord is not free from challenges. The cooperative is addressing difficulties in maintaining profitability at its smaller rural locations and has recognized the need for improved member engagement, as 20 out of its 85 stores currently lack owner representatives. In response, Coop Nord is overhauling its democratic structure, seeking to reduce the number of representatives while enabling them to serve larger areas, thus fostering more strategic interactions.

Skyttberg acknowledges the broader financial struggles facing Coop, particularly evident in Coop Syd, which is currently negotiating for financial support to achieve profitability by 2027. He emphasized the importance of a collaborative approach within Coop Sverige, stating, "Vi är beredda att stötta Coop Syd, eftersom deras volymer är otroligt viktiga för helheten" (We are ready to support Coop Syd, as their volumes are incredibly important for the whole). Additionally, while Coop Nord has been successful, it still faces the perception of having higher prices than competitors like ICA, which dominates the market with a 50% share. Skyttberg highlighted that negotiating prices and enhancing national growth strategies are essential for maintaining competitive advantage.