Iceland’s online business achieved record sales during the year, surpassing performance levels last seen during the Covid pandemic, the company has reported in its latest annual results, filed at Companies House.
It says its same day delivery channel enjoyed particularly strong growth in the 52 weeks to 28 March, delivering its best-ever sales result.
Iceland relaunched its Iceland website in the first quarter of the year with what it said was a first-in-class technology for a food retailer, supporting improvements in onsite search and page loading speeds.
The company said the relaunch supported significant growth in average basket size, with increases in both units sold and total value of sales. However it admitted there was a temporary impact on sales while the website bedded in.
Improved efficiency in its supply chain also delivered its best ever results in terms of online availability for the period, which further fuelled basket size growth, the company said. Last month, Iceland completed the final implementation of a new warehouse management system within its regional distribution centres. Its newest RDC in Warrington opened in Q4 and is now delivering to 350 stores.
Extending rapid delivery
Iceland also extended its rapid delivery business this year, adding Deliveroo to its existing Uber Eats and Just Eats delivery partners. 900 sites now offer rapid delivery. The company also delivered what it said was an Amazon world-first with its launch of a merchant-fulfilled grocery partnership now operating in two stores but rolling out to additional stores before the end of the year.
However, Iceland warned of imminent price rises for customers. It said that while it was doing its upmost to offset the growing cost pressures from suppliers putting up their prices to cover the increased labour costs arising from the Autumn Budget, it would: “inevitably have to pass some of these on to consumers.”
Within its stores, Iceland is to rollout digital screens across its estate delivering the biggest digital screen platform in the UK, the company claims. It said the retail media investment would allow it and its suppliers to talk directly to customers instore and tempt customers from outside in.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research. Click here to subscribe to the FREE newsletter sent straight to your inbox. Why not follow us on LinkedIn to receive the latest updates on our research and analysis?
