Iceland sales continue to fall
New format stores working says Big Food Group
October 9 2002
Sales at supermarket chain Iceland are still falling in its core store estate.
For the thirteen weeks to the end of September 2002, parent company Big Food Group has reported a like-for-like sales of 7.7 per cent at Iceland.
However, the company said it has restored margins in the stores, which had been hit by a period of deep price promotion, and Big Food is heralding the success of its new format Iceland stores.
Like-for-like sales at the first four new format stores saw an average increase 14.7 per cent. The programme to convert more stores continues, with four refitted and two new concept stores opened during the quarter, bringing the total to 10.
The Booker cash and carry and Woodward foodservice businesses, which account for 70 per cent of Big Food turnover, performed better. Booker like-for-likes were up 0.9 per cent, and 3.2 per cent excluding tobacco sales. Woodward saw an increase of 13.5 per cent. During the quarter, Booker launched a Drop Shipment programme, which involves daily direct delivery of products to its core c-store and corner shop market.
Chief executive Bill Grimsey said: “Following our statement in July our wholesale business continues to make good progress. I’m particularly pleased that margins at Iceland were quickly restored, whilst the initiatives we have developed to improve sales are being implemented in store. The implementation of the strategic initiatives within the Group is making good progress.”
