Big Food plans major roll out of new Iceland formats
‘Steady’ progress in difficult market
April 11 2003
Big Food Group plans to upgrade 100 Iceland stores to its new trading formats over the next year to order to realise the benefits of increased sales.
Reporting on fourth quarter trading for the 13 weeks to March 28, Big Food said its underperforming frozen food specialist Iceland was showing improvement. Overall like-for-like sales for the quarter were down 3.4 per cent, a 2.1 per cent decline when adjusted for the late Easter, compared to a 3.6 per cent decline in the previous quarter.
Big Food said its focus on promotional and advertising support for Iceland after Christmas had maintained the improving sales trend. Sales at the three new formats “continue to impress,” said the company. The original three refurbished stores have seen average sales rise by 16 per cent since conversion almost a year ago, while across all 33 stores converted so far average sales increased by 14.1 per cent.
The new stores have seen a 15.5 per cent increase in customer transactions, with new ranges including fresh produce, ready meals and ethnic foods proving popular. A major roll out programme will see 100 stores converted in the coming year, with around 150 stores operating in the new format by April 2004.
At the Booker cash and carry business, non-tobacco sales grew by 0.8 per cent in the quarter. Booker also recruited the 1000th customer to its Premier store fascia.
Chief executive, Bill Grimsey said: “The Group has made steady progress at a time when the market generally has slowed. The performance of our refurbished Iceland stores is particularly pleasing and the Group is now geared up for a major rollout of the new format stores across the estate.”
