Iceland - comment
The Grocer magazine reports that Iceland is seeking to increase the number of Food Warehouse stores, and has appointed Mason Partners LLP to assist in finding these 10,000+ sq ft sites across the UK. Although it is a catchy headline number, the reality is likely to be more subdued than this. For some context, Iceland currently operates c. 200 Food Warehouse stores and plans to open c. 20 stores in the FY24/25 year. This coincides with the opening of their new Warrington depot, which should become operable in 2025.
The headline reflects Iceland’s ambition and their return to growth mode, but we would expect Iceland’s cautious nature would limit new store openings to 20-30 p.a.
Iceland is due to report full-year numbers to March 2024 later this month (25th July).