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Big food plans
From the Swindon Advertiser, first published Thursday 7th Mar 2002.
The Big Food Group the new name for Iceland has unveiled plans to spend £375 million on a strategy designed to halt a sharp fall in sales.
The company, which has a major distribution depot in Swindon, plans up to 80 new Iceland stores by 2005 with a renewed focus on frozen food in an effort to win back customers on the high street.
Ten more home shopping picking centres are also planned alongside a concerted bid to win more business in the contract catering market.
Big Food intends to fund the three-year recovery drive through a sale and leaseback deal on Iceland stores and new funding from banks and the City.
Big Food said sales across its 760 Iceland stores were still on the slide, down 3.7 per cent on a like-for-like basis in the eight weeks to March 1.
Sales at Booker also fell over the same period, by 2.1 per cent, and the declines meant the group as a whole recorded negative like-for-like sales of 2.4 per cent.
Big Food reports results for the full-year to March 31 in May and analysts are expecting pre-tax profits of £40 million.
It said: "Successful implementation of our strategic initiatives should be the cornerstone of value creation for shareholders."
The new strategy comes after a torrid 14 months for the group, which lost its founder Malcolm Walker after a controversial share sale a year ago.
Sales were hit by a move into the organic food market as the group counted the costs of buying cash and carry chain Booker.
New chief executive Bill Grimsey was forced to issue a series of profit warnings last year as the group's share price nosedived 45%.
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