Trust Survey in the Grocery Retail Sector: ICA Loses Ground While Willys and Lidl Gain Ground

A new study from Reputation and Trust Analytics reveals a clear shift in the Swedish grocery retail sector. ICA, long the industry’s most reputable player, is losing ground and has fallen to fourth place. At the same time, discount chains such as Willys and Lidl are strengthening their positions. Willys tops the list, followed by Hemköp and Lidl.

Axfood dominates – Willys and Hemköp at the top

Willys has taken the top spot with a reputation score of 3.70, followed by Hemköp (3.63) and Lidl (3.62). Willys’ strong reputation is primarily due to perceptions regarding value for money, leadership, and communication. This positive trend in reputation is also reflected in the company’s financial results: Willys grew by 4.8 percent in the fourth quarter of 2024 and is poised to achieve its strongest market position ever.

Hemköp is also performing strongly, and the public holds positive views regarding the company’s governance, leadership, and reputation as an employer, all of which have a positive impact on business performance. In the fourth quarter of 2024, the company reported growth of 4.6 percent.

Low-price positioning as a key to success – Lidl is making headway Value for money has become increasingly important to Swedish consumers, which benefits discount chains. Willys and Lidl have clearly capitalized on this shift. Lidl, ranked as the third most reputable brand in the industry, stands out for its positive reputation regarding value for money.

"We have undergone a shift in which the low-price strategy has proven to be the most competitive at a time when consumers prioritize price over other factors such as availability and sustainability," says Alexander Widén, senior advisor at Reputation and Trust Analytics.

"The shift makes perfect sense given the decline in purchasing power among Swedish households in recent years. Consumers are turning to the options they perceive as the best value for money—a trend that has benefited Willys and Lidl," comments Widén.

It is also worth noting that the German-owned Lidl has the industry’s weakest reputation in terms of environmental and social responsibility.

Perceived pricing versus actual pricing

Perceived value for money is a key factor in reputation, but this perception does not necessarily align with the actual prices consumers encounter. Several studies indicate that ICA often offers the industry’s cheapest grocery basket. Yet the company’s reputation is declining. Its pricing is still perceived as high in the public consciousness.

ICA Loses Top Position

ICA has historically been at the top of the industry and has been able to base its offering on the strongest public support. We are now seeing a shift in the trend, with the chain’s reputation having fallen from a peak of 3.86 during the 2021 pandemic to 3.60 in 2024, placing ICA in fourth place in the grocery retail sector. A significant decline in reputation indicates weakened support from the Swedish public. Competitiveness is waning, and the risk of losing market share is increasing.

As a market leader, the company has repeatedly been the subject of media attention and faced criticism regarding the inflation-driven price increases of recent years. The study shows that ICA stands out in terms of its reputation—the public perception is that ICA is performing very strongly financially.

“The perception of strong financial results can create negative associations, especially at a time when household finances are under pressure. Consumers may feel that stores are maintaining high profit margins while they themselves are finding life increasingly difficult,” says Widén.

Falling inflation is reshaping the market

In 2024, food inflation declined—from 12.1 percent in 2023 to 1.4 percent in 2024. This suggests that we may see another shift in consumer preferences as the relative purchasing power of Swedish households increases.

“There are signs that accessibility and convenience are becoming increasingly important to Swedish consumers after several years of focusing on price. This could be key for ICA in repairing the damage done to its reputation while the focus was on price,” says Widén.

Coop is losing more market share

Coop's reputation has dropped sharply, from 3.67 to 3.38, and it ranks second to last in the study. This is a significant decline that indicates the company remains in a vulnerable position in terms of competitiveness.

Coop has already reported losses of approximately 1.4 billion kronor per year in 2022 and 2023, which have plunged the company into a financial crisis. In 2024, it was reported that the chain lost approximately 200,000 customers, which is consistent with the negative trend in the company’s reputation and underscores the challenges the company faces in retaining its customer base.

Math at the bottom of the class

Mathem ranks at the bottom of the industry with a reputation score of 3.37. The public considers the company to have strong innovation capabilities, but it struggles to compete in other areas of its reputation. The lack of physical stores appears to have a negative impact on Mathem, as consumers value in-person interactions and relationships with store staff. The share of e-commerce in the grocery sector is 4.1 percent—compared to 22 percent in the durable goods sector.

The industry's reputation is in good standing

The reputation structure of the grocery retail sector indicates that the public has a high level of trust in the sector, despite intense media scrutiny and critical political statements directed at the industry’s leading players.

An average score of 3.53 on a five-point scale indicates that the industry has a good reputation and that the underlying dimensions of that reputation are relatively consistent. The most positive aspects are the public’s perceptions of Financial Performance, Products and Services, Dialogue, and the Workplace.

Methodology – How the Study Was Conducted

Reputation and Trust Analytics maps a company’s reputation and analyzes its impact on stakeholder behavior using a data-driven approach. The methodology establishes a measurable link between reputation and stakeholder support—that is, a company’s ability to operate successfully and competitively.

Data collection was conducted via an online survey between July 1, 2024, and August 5, 2024. In the study, 4,612 Swedes evaluated these companies using the Reputation and Trust Analytics model. The survey assessed reputation based on eight dimensions: governance, The respondents, who were representative of the Swedish population (ages 15–65, weighted by gender, age, and residential area), also answered questions about their willingness to support the companies through purchases, investments, or job applications.

The study of the grocery retail sector is the first of its kind in Sweden.

For more information, please contact

Alexander Widén, Senior Advisor
Reputation and Trust Analytics AB
+46 70 471 2332
alexander.widen@reputationandtrust.com

Top List of Grocery Retailers