Iceland moderates sales decline
Iceland has reported that like-for-like sales fell by 2.7% in the year to 26 March following a decline of 4.4% in the previous year.
The frozen food retailer said turnover edged down 0.8% to £2.7 billion as it described the UK grocery market as “extremely challenging”.
Iceland revealed that the like-for-like performance was mainly a reflection of a reduction in total customer transactions which was partly offset by an increase in average basket values.
EBITDA, excluding exceptional items, was £150.5 million which was a slight improvement year-on-year driven by a strengthening of gross margin and control of operating costs.
During the period Iceland opened 16 new stores in the UK including six larger stores under The Food Warehouse fascia.
The retailer said its Power of Frozen marketing campaign was helping to improve public perceptions of frozen food.
Iceland chairman and chief executive Malcolm Walker added: “We have achieved good progress with a range of strategic initiatives designed to differentiate our business, and stabilise our financial performance, in what remains an extremely challenging UK market place. Our “Power of Frozen” marketing campaign is successfully re-emphasising our long-established credentials as the UK’s leading frozen food specialist.”