Iceland marks 20 years of transformation under Sir Malcolm Walker and Tarsem Dhaliwal
Today marks 20 years since Sir Malcolm Walker and Tarsem Dhaliwal reclaimed control of Iceland Foods, transforming it from a near-bankrupt business into one of the UK’s most impressive retail success stories.
Since 2005, Iceland has grown from uncertainty to strength, now boasting over 950 stores, a thriving online business, and a 300% increase in sales. In the last financial year, Iceland reported over £4 billion in sales, a 7% year-on-year increase despite broader challenges in the retail sector. Over the past 20 years, the business has contributed £2.2 billion in taxes to the UK economy, showcasing how a British-owned, family-run retailer can create lasting value.
The turnaround success is credited to bold decisions: deep-cleaning stores, simplifying product ranges, cutting prices, improving product quality, and stripping out bureaucracy- all while restoring pride among customers and staff. Within the first year, Iceland achieved a £52m profit and was the UK’s fastest-growing food retailer, with like-for-like sales up 15%.
Richard Walker, Executive Chairman of Iceland, highlighted these efforts in a heartfelt LinkedIn post: “On 11 February 2005, despite being ill with the flu, my dad and Tarsem Dhaliwal embarked on one of the most spectacular turnarounds in UK corporate history. They didn’t just rescue a business—they rebuilt it into something stronger than ever. They showed that a British, family-owned retailer can not only survive but thrive.”
Walker also reflected on the principles that continue to guide Iceland’s success: Focus, Simplicity, Accept Reality… and have some fun.
Since 2005, the business has grown substantially, opening over 190 The Food Warehouse stores, creating thousands of jobs, and leading on major sustainability initiatives. Iceland has pioneered ethical actions, including banning palm oil, offering interest-free microloans during the cost-of-living crisis, and raising over £18 million for dementia research through its charitable foundation.
Richard added: “Over the past 20 years, we’ve been consistently recognised as one of the UK’s best places to work, thanks to our commitment to our people and communities.”
Looking ahead, Iceland remains committed to innovation and customer-centric growth. “As we plan for the next 20 years, our mission is the same—deliver great value, invest in our stores, and continue challenging the market for the benefit of British shoppers,” said Richard.
