Willys, a subsidiary of publicly traded Axfood, will begin lowering prices on food items on March 30, ahead of the official implementation date of the reduced value-added tax (VAT) rate. The move is designed to provide early savings to consumers during the busy Easter shopping period.
All food products previously subject to a 12 percent VAT will be included in the price reductions, according to reports. The decision highlights Willys’ commitment to offering competitive pricing in the Swedish grocery market.
The timing of the price cuts is strategic, coinciding with the start of the Easter holiday week, a peak period for grocery purchases. “Easter week is a time when many people will celebrate, and we want to make it easier for our customers to do their food shopping at lower prices already from Monday, well in advance of the Easter celebrations,” said Nicholas Pettersson, CEO of Willys.
Willys began adjusting prices on promotional items on March 16, anticipating the upcoming VAT reduction. This early adjustment provides customers with an initial taste of the savings to come.
The VAT reduction from 12 percent to 6 percent is expected to translate to savings of approximately 53 Swedish krona on a 1,000 krona grocery basket, or roughly 5.30 krona on a 100 krona item.
The company welcomed the parliamentary decision to lower the VAT on food, describing it as a significant benefit for Swedish households. Willys stated its mission is to offer Sweden’s most affordable grocery basket and is proactively implementing the price reductions in all stores and online.
Willys is implementing price reductions that precisely reflect the new VAT rate, which may result in prices being displayed to the nearest öre (Swedish penny) rather than rounded figures. This ensures customers receive the full benefit of the tax reduction.
