What Hagar does

Hagar hf. is Iceland's largest retail group, operating a multi-format portfolio spanning discount grocery (Bónus), premium grocery (Hagkaup), fuel stations (Olís), bulk/wholesale (Stórkaup), prepared foods (Eldum rétt), fashion (Zara franchise), banana distribution (Bananar), import/distribution (Aðföng), and car wash (Glans). Internationally, Hagar operates through subsidiary SMS in the Faroe Islands. The company serves the full mass-market Icelandic consumer base across price points and occasions, plus Faroese consumers, with FY2025/26 revenue of ISK 197,043 million and EBITDA of ISK 18,129 million (9.2% margin).

Hagar's business model is fundamentally transaction-based retail: revenue is generated through physical store sales across formats, with pricing split between Bónus's discount positioning and Hagkaup's premium positioning. Recent strategic technology layers include the Takk NFC-enabled loyalty program (built with PassEntry, integrated into Apple Wallet and Google Wallet), which enrolled over 15% of Iceland's adult population within five days of its January 2026 launch, and Hagar miðlar, a retail media advertising network launched in 2026. The April 2026 procurement partnership with Denmark's Salling Group — the country's largest retailer — provides bulk purchasing power, private label products and broader assortment, enabling price reductions on hundreds of products across Bónus and Hagkaup.

Hagar's go-to-market is direct-to-consumer through owned physical retail, supplemented by the Takk digital loyalty layer and Hagar miðlar advertising channel. Ownership is dominated by Icelandic pension funds (~64.7% historically), with the company publicly traded on NASDAQ Iceland under ticker HAGA since December 2011. The innovation fund Uppsprettan, established in 2021, supports Icelandic food-production entrepreneurs and functions as both a CSR initiative and a product innovation pipeline.

Name

Hagar

Legal name

Hagar hf.

Website

http://www.hagar.is/

Company type

Public

Founded year

2003

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Hagar hf. is Iceland's largest retail group, operating multi-format grocery (Bónus, Hagkaup), fuel (Olís), fashion (Zara), wholesale, and food-service businesses serving Icelandic and Faroese consumers, with FY2025/26 revenue of ISK 197 billion.

Ownership category

akta.pro rank

Product category

Grocery Retail

NAICS

Supermarkets and Other Grocery Retailers (except Convenience Retailers) (445110), General Line Grocery Merchant Wholesalers (42441), Grocery and Convenience Retailers (4451)

SIC

Retail-Grocery Stores (5411), Wholesale-Groceries, General Line (5141), Wholesale-Petroleum & Petroleum Products (No Bulk Stations) (5172), Retail-Family Clothing Stores (5651)

akta.pro primary industry

Regional / Local Hard Discount Chains (CRAHADAJ)

akta.pro secondary industry

Fresh-Heavy / Produce-Led Hard Discounters (CRAHADAC)

Keywords

• Grocery retail
• Fuel stations
• Fashion retail
• Food service
• Retail media

Headquarters

HQ city

Kópavogur

HQ country

Iceland

HQ region

Europe

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Grocery Retail Sales: Revenue from sale of grocery products through Bónus (discount) and Hagkaup (premium) store formats in Iceland. FY 2025/26 sales of ISK 197,043 million representing 9.3% YoY increase. Includes private label products under various brands from Salling Group partnership.
2. Fuel Retail: Revenue from fuel sales through Olís service stations across Iceland, including convenience retail at fuel station locations.
3. Fashion Retail: Revenue from Zara franchise operations in Iceland.
4. Food Service: Revenue from Eldum rétt restaurant operations and other food service businesses.
5. Faroe Islands Operations: Revenue from SMS operations in the Faroe Islands, described as a strong operational pillar with robust business performance.

Pricing tiers

Go-to-market motion2 records

Distribution channels7 records

Marketing channels4 records

Core offering

Hagar is a multi-format retail company operating discount and premium grocery stores (Bónus, Hagkaup), fuel stations (Olís), fashion franchise stores (Zara), food service operations (Eldum rétt), wholesale business (Stórkaup), and Faroe Islands grocery operations (SMS). The company sells grocery products, fuel, clothing, prepared foods, and other retail goods directly to consumers through its owned physical store network across Iceland and the Faroe Islands.

Product overview

Hagar is Iceland's leading retail company with diverse operations in Iceland and the Faroe Islands, primarily in the grocery and fuel markets. The company operates a multi-brand portfolio consisting of discount grocery chain Bónus, full-service grocery stores Hagkaup, fuel station chain Olís, Faroe Islands operations (SMS), prepared foods brand Eldum rétt, import/distribution company Aðföng, banana distribution (Bananar), wholesale business Stórkaup, and clothing retail through Zara. The portfolio also includes Takk loyalty program providing cross-brand customer rewards, and Glans car wash service. The company announced a new procurement partnership with Danish retailer Salling Group in 2026 to enhance product assortment and pricing across its grocery brands.

Differentiator

Problem solved

Functional benefit

Brands

• Takk: Frictionless loyalty program using NFC-enabled digital passes in Apple Wallet and Google Wallet, launched January 2026.
• Glans bílaþvottur
• Hagar miðlar

Products and services

• Bónus Discount grocery store chain known for low prices and broad product selection, operating throughout Iceland. Targets Icelandic households seeking affordable daily grocery shopping.
• Hagkaup Full-service grocery stores offering wider product assortment and extended hours compared to Bónus, serving consumers seeking higher-end grocery products.
• Olís Fuel station chain operating throughout Iceland, serving both individual customers and commercial/freight operations, with convenience retail at station locations.
• SMS Retail and grocery operations in the Faroe Islands, representing Hagar's international presence and a strong operational pillar with robust business performance.
• Eldum rétt Prepared foods brand offering ready-to-eat meals and cooking solutions to Icelandic consumers through retail and food service channels.
• Stórkaup Cash and carry / warehouse store format serving business customers seeking bulk retail purchases.
• Zara Iceland Fashion retail through Zara franchise stores in Iceland, offering clothing and accessories to Icelandic fashion consumers.
• Takk Loyalty Program Digital loyalty program launched in January 2026, integrating with Apple Wallet and Google Wallet to offer frictionless loyalty rewards across Hagar's retail brands. Technology developed by PassEntry.
• Hagar miðlar Retail media advertising network allowing brands to advertise to Hagar's customer base, described as one of the fastest-growing advertising channels in Iceland. Hosted first retail media event with 200 attendees.
• Glans Car Wash Car wash service chain operating at five locations across Iceland, offering vehicle washing services to Icelandic consumers.

Quantifiable outcome

• Sales increased 9.3% YoY to ISK 197,043 million in FY 2025/26
• +3 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature2 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Salling GroupcoreStrategic or Co-development Partner · 16 April 2026Procurement partnership with Denmark's largest retailer enabling Hagar's Bónus and Hagkaup stores to reduce prices on hundreds of products. Salling Group operates over 2,100 stores in Denmark, Germany, Poland and Baltic states, with brands including Netto, føtex, Bilka, and Rimi. This is described as the biggest step in procurement in decades for Hagar.
• PassEntrycoreTechnology or Integration · 1 January 2026Technology partnership for Takk loyalty program, providing NFC-enabled digital passes integrated into Apple Wallet and Google Wallet. The frictionless loyalty scheme rapidly gained adoption with over 15% of Iceland's adult population enrolled within five days of launch.
• Icelandic food entrepreneurs (Uppsprettan fund recipients)minorOthersHagar's innovation fund Uppsprettan supports food entrepreneurs in Iceland, providing both financial grants (funding 50 projects with ~70 million ISK since 2021) and advisory support from Hagar staff. Recipients include Stökkfiskur, GABRÍELA, Oatme, Helga Magga, R8iant, Neskja, Icelandic Gourmet Foods, North Tropics, and Norr Energy Gum.

Scale indicators10 records

Recent moves8 records

Expansion highlights5 records

Broad incumbents

• Coop Sverige: Sweden's largest grocery cooperative, operating supermarket, hypermarket and discount formats. Comparable to Hagar in being a multi-format grocery operator serving a small/medium national market.
• NorgesGruppen: Norway's largest grocery group operating Meny, Kiwi (discount), Joker, Spar and convenience. Particularly relevant as a benchmark for Hagar's Bónus discount banner strategy.
• Ahold Delhaize: Global multi-format grocery retailer (Albert Heijn, Stop & Shop, Food Lion, bol.com). Comparable in operating diversified grocery + e-commerce + private label at scale across multiple geographies.
• ICA Gruppen: Swedish listed retailer operating ICA supermarkets and convenience (Rimi), plus Apotek Hjärtat. Similar multi-banner Nordic grocery/convenience structure and listed-equity governance benchmark for Hagar.
• Kesko: Finnish listed multi-format retailer (K-Citymarket, K-Market, K-Supermarket) with building/technical trade. Comparable diversified Nordic retail conglomerate model with both grocery and non-grocery banners.

Emerging players

• Salling Group: Denmark's largest retailer (Netto, føtex, Bilka, Rimi) and now Hagar's procurement partner. Comparable multi-format grocery operator and potential model for Hagar's evolution; also offers an indirect competitive threat via cross-border sourcing.
• Lidl (Schwarz Group): German hard-discount retailer now operating in Iceland. Direct threat to Bónus's discount leadership and a relevant peer for grocery operating model and private label development.

Direct peers

• Samkaup: Icelandic cooperative retail group operating grocery stores (Nettó, Kaskó) plus fuel/convenience. Direct domestic competitor to Hagar's Bónus, Hagkaup and Olís banners across Iceland.
• Krónan: Icelandic discount grocery chain owned by a private investment group. Directly competes with Hagar's Bónus on price and overlap heavily in the same Icelandic footprint.
• Rema 1000 (Norway): Norwegian hard-discount grocery franchise model. Functionally very similar to Bónus in Iceland - low-price positioning, private label, franchisee/centralised procurement model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/sharer/sharer.php?u=https://www.hagar.is
• LinkedInlinkedin.com/company/hagar-hf

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries13 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hagar