The Big Food Group has warned an escalation in the grocery wars which are fuelling a wave of consolidation, as the retailer revealed a hiccup in the recovery of its Iceland chain.
Like-for-like takings at Iceland, which the Big Food Group is attempting to turn around through refits and promotions dipped by 0.2 per cent in the first three months of the year.
The decline followed two quarters of sales growth and was blamed on the impact of store refurbishment work and increased competition.
The company warned that rivalry was likely to intensify, which would result in further operational efficiencies.
A spokesman for the group said: “The market place continues to experience greater competiveness together with pressures on both selling prices and costs. These factors are expected to increase in intensity during the year ahead.”
Chief executive Bill Grimsey added: “With the acceleration of the Iceland refit programme next year and the maintenance of a tight control over margins and costs, we can compete in tomorrow’s world.”
No comments yet