Big Food sees Iceland improving
Like-for-likes still down as store refurbs roll out
January 10 2003
Like–for -like sales at supermarket chain Iceland were still negative in the run-up to Christmas, but owner Big Food Group said it is encouraged by Iceland’s progress.
In the thirteen weeks to December 27 like-for-like sales at Iceland were down 3.6 per cent, while in the five week Christmas trading period to January 3 the position improved, with like-for-likes down 2.1 per cent. Big Food pointed to the improvement over a like-for-like fall of 7.7 per cent in the 13 weeks to September 27.
A statement from Big Food said: “Overall, the Board is encouraged by the progress being made despite the more challenging trading environment. In particular, trading at Iceland is on an improving trend, the Iceland re-furbished stores continue to achieve good sales uplifts and gross margins have increased year on year across all divisions.”
The company said Iceland’s in-store promotions have been supported by better focussed advertising and marketing activity. Higher volume of products were sold in the Christmas period compared to last year, and gross margins “have continued to be robust as the improved sales trend has gathered momentum.”
The Iceland store re-fit programme saw 16 more stores refurbished, and four new concept stores opened, bringing the number trading in the new formats to 30.
Like-for-like sales at the first four new format stores have averaged 11.9 per cent, while average for all 24 new format re-fits is 12.6 per cent. Big Food said the uplift is even higher when the freezer centre format, which has a different approach, is excluded and the company is getting its planned return on investment. Around 100 stores a year will be refitted.
In the Booker cash & carry business, non-tobacco sales generally held up well against against stronger year-on-year sales comparisons, but tobacco sales have declined following a relaxation of import controls at UK ports.
