UK frozen foods retailer Iceland has seen its like-for-like sales decline 4.4% in the year to 27 March, according to accounts just filed.
The retailer, which also boasts a presence in the Republic of Ireland, posted turnover of £2.67 billion for the period, as well as adjusted EBITDA of £150.2 million.
In a statement, the retailer said that the drop in sales was due to ‘a reduction in customer transactions, food price deflation and the cannibalisation effect of new store openings’.
It opened a net 43 new stores over the course of the year.
Commenting on its results, Iceland chairman and chief executive Malcolm Walker said, “This has been an exceptionally challenging year for the Group, and for the UK food retailing industry as a whole.
"In the face of food price deflation, intense competition and significant change in consumers’ shopping habits, Iceland has continued its long tradition of successful reinvention. We have done this by developing a new store format, launching new product ranges, upgrading packaging, rethinking marketing and initiating a major productivity programme.”
He added: “The benefits began to become evident in a more encouraging underlying sales and profit performance towards the end of the year, which has put us in a stronger position to face the continuing competitive challenges in the year ahead.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones
