Iceland sales on improving trend
Like-for-likes slippage lessens as store refits roll out
July 9 2003
The declining trend in like-for-like sales at frozen food retailer Iceland has been improved in the first quarter, says owner Big Food Group.
In the 13 weeks to June 27, like-for-likes at Iceland were 0.2 per cent down. Adjusting for the later Easter, Big Food said the rate of decline was 1.6 per cent compared to a decline of 2.1 per cent in the fourth quarter of 2002/03.
Big food said Iceland, which it acquired almost three years ago, has now been on an improving trend since November 2002.
Plans to convert 100 Iceland stores to the new format this year have started, with a “sustained improvement” in like-for-like sales resulting from the refit programme.
With the refit rate running rate at three stores a week, a total of 23 stores were converted across the quarter, bringing the total number trading in the new format to 62. The average uplift in like-for-like sales from the refitted stores during the first year is 13.2 per cent. The focus for the programme is initially on those with the highest sales stores, including convenience stores.
In Big Food’s Booker cash-and-carry chain, non-tobacco sales are growing, with like-for-likes up 1.6 per cent in the first quarter. To help combat the fall in tobacco sales, hit by the cross channel trade, Booker has launched a Spend and Save scheme which rewards higher volume customer purchases. Big Food said tobacco sales had responded to the initiative, which will be a permanent feature at Booker’s. Like-for-likes at foodservice group Woodward increased by 18.2 per cent. Net Debt
Chief executive Bill Grimsey said: “Trading in the first quarter has improved on the more positive trends we achieved in the second half of last year. The strategic initiatives we are now rolling out across the Group in line with our recovery strategy will have a progressive impact and re-enforce this progress.”
