Willys discounters – The Swedish Kaufland

Willys is Sweden’s only domestic discounter and the operational backbone of Axfood, the country’s second-largest grocery group. Its store format, ranging from 1,100 to around 4,700 square meters, resembles German Kaufland superstores in both concept and process efficiency. The upper end of Willys’ store size is comparable to Kaufland’s average in Germany prior to acquiring Real. While its assortment of around 10,000 SKUs is smaller than Kaufland’s, it reflects Willys’ hybrid model: broader than discounters, leaner than full-range supermarkets.

In 2024, parent company Axfood reported SEK 84.1 billion in net sales (approx. EUR 7.35 billion), capturing an estimated 23% of Sweden’s FMCG market, up from 20% in 2021. Willys accounted for SEK 45.8 billion (EUR 4.05 billion), or 54.4% of group sales—securing roughly 12.5% of the national grocery market. Part of Axfood’s growth stemmed from the acquisition of 42 City Gross hypermarkets in southern Sweden, but Willys remains the group’s main growth engine. Over the past five years, the soft discounter has increased its revenue by nearly 60%, underlining its role as the primary challenger to Lidl.

Willys has built its reputation over four decades on one core promise: offering Sweden’s lowest grocery prices. This positioning continues to be validated by Matpriskollen, Sweden’s leading grocery price comparison platform. As of early 2025, the market analysts once again ranked Willys lowest in price across all six national price zones and six household types – from single-person households to families with teenagers. The survey methodology ensures comparability by focusing solely on regular prices of 219 commonly consumed grocery items, thus excluding promotional offers and loyalty discounts. At the same time direct comparisons with main competitor Lidl are not possible, since Lidl’s focus on private labels excludes the German discounter from the survey scope.

Recent financial data confirms that Willys is maintaining its lead. In 2023, Lidl grew by 11% to SEK 18.6 billion, while Willys grew by 4.6% to SEK 45.8 billion. In absolute terms, both chains added roughly SEK 2 billion in revenue, demonstrating that Lidl has not yet narrowed the gap, despite faster growth from a smaller base. A year earlier, Lidl’s growth stood at 18%, compared to Willys’ 16.8%.

While Willys holds its position with nearly 250 stores nationwide, Lidl CEO Jakob Josefsson has announced plans to expand the chain from currently 207 to approximately 300 stores in the long-term. Yet despite top-line momentum, Lidl reported a net loss of SEK 185 million in fiscal 2023/24, signaling cost pressures tied to high overheads connected with single-digit market share.

Willys balances operational efficiency with customer convenience. Scan & Go and self-checkouts are standard in every store, as is a robust online offer. While home delivery is not available nationwide, click & collect services extend beyond in-store pickup to include parking lot parcel lockers and external partner locations, such as Circle K petrol stations in Stockholm.

From strategic price positioning to process-driven efficiency – here’s how Willys brings its discounter DNA to life on the Swedish shop floor:

In line with Scandinavian retail architecture, Willys stores combine functional design with welcoming, wooden elements

Scan & Go is a standard feature at Willys, reflecting the retailer’s push for fast, frictionless shopper journeys

Willys’ fruit and vegetable section features no-frills merchandising and sharp price communication right at the store entrance

Positioned next to fresh produce, Picadeli’s salad bar taps into healthy, on-the-go meal missions

The self-service meat chillers are segmented by shopper missions: green for organic, orange for quick meals, and black for Willys’ own-label beef. Swedish origin is specifically highlighted.

Exclusive discounts for WillysPlus members are prominently marked in yellow to differentiate loyalty pricing from standard offers

Clear category signage and visible price labels help shoppers navigate easily while reinforcing Willys’ value message

Health positioning and Swedish origin are key attributes throughout Willys’ ambient assortment

The soft drinks aisle showcases Willys’ process focus: cans are stocked in shelf-ready packaging, while bottles are fed via gravity-driven push systems

Combining pallet stacks and price-focused shelf ends, Willys turns its main aisles into high-impact promotional runways

Also in the dairy section Willys follows clear layouts and value messages

The ‘Mejeri’ zone offers a wide range of chilled dairy – underscoring Willys’ strong competence in everyday staples like milk, yogurt, and butter

A red coffee pyramid under the ‘Just nu!’ (Right now!) banner draws attention to extra value for WillysPlus members

Willys’ core brand promise, “Sweden’s cheapest grocery basket”, is visibly reinforced throughout the store’s interior signage

Over 100 varieties of sweets await in the ‘Smått & Gott’ (Small & Tasty) Pick & Mix zone, allowing shoppers to fully personalize their candy bags

With more than 70 crispbread SKUs, Willys presents this uniquely Nordic category in both premium formats and bulk mono-pallets

Canned fish is merchandised for volume efficiency in open wire bins, allowing for quick restocking and easy shopper access

Willys’ Scan & Go checkout enables WillysPlus app users to finalize purchases via QR code, streamlining the exit process

Outside the store, chilled and frozen lockers support click & collect orders, strategically positioned next to reserved online pickup parking