Retailers ICA and Norgesgruppen have entered a cooperation agreement that will see the two groups join forces in the areas of sourcing and distribution.
The agreement coordinates distribution and logistics between ICA Norway and Norgesgruppen's wholesale company, Asko.
ICA said the deal represents an "important step" as it looks to turnaround its struggling Nordic operations.
"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.
ICA said it will retain 40% of its distribution volume. It is expected the move will create cost savings as well as providing the firm with additional purchasing power.
