Iceland | Verdict Company Briefing
Verdict Research Limited, August 2012, Pages: 24
A new one-stop destination for unique data and opinion on Iceland's food & grocery offer. Targeted at retailers, and stakeholders to the retailer, we assess its food & grocery performance, strategic direction and provide Verdict's view on its future.
In 2011, Iceland's founder and CEO led a management buyout of the retailer after Landsbanki put its 67% stake up for sale. Now the buyout is complete, management time can be dedicated to expansion of the business over the coming years. But expansion should not be the retailer's number one priority, it must work to retain the shoppers it gained since the downturn in order to post future growth.
SCOPE
- Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Iceland
- Plan your expansion strategy by understanding how and where Iceland has increased its store portfolio, and the impact this has had on densities
- Discover how Iceland has increased its visitor share with detailed consumer data, and assess the impact this has had on market share and sector sales
HIGHLIGHTS
Malcolm Walker, the founder and CEO of Iceland regained control of the retailer in March 2012 following months of speculation over the retailer's future and a lengthily bidding process. Mr Walker led a buyout by his management team – who already owned 23.0% of the retailer and who together now hold 43.0% of the shares.
In a turbulent year, Iceland recorded its seventh consecutive year of sales growth in 2011/12, with revenues increasing 9.4% to £2,552.8m. Since Malcolm Walker returned to the retailer in 2005, sales have increased 77.4%, and the retailer has turned around from a £63.4m loss for 2004/05, to an operating profit of £170.2m.
While Iceland has only seen a slight rise in main user share between 2007 and 2011 – just one percentage point – its visitor share increased 6.4 percentage points in 2008 at the beginning of the downturn, and has remained at its elevated level for four consecutive years.
REASONS TO BUY
- How will Iceland's food & grocery sales grow in 2013, and what impact will this have on market share
- What are Iceland's plans for expansion over the coming years, and how will this contribute to sales growth
- What does Iceland need to do in order to retain the customers it has stolen from rivals since 2008
OVERVIEW
Introduction
Summary
- Market share remains steady as Iceland battles against rivals;
- Frozen food focus reaps rewards;
- Seventh consecutive year of growth as profits reach record level;
- Space expansion continues as high street failures aid openings;
- Management needs to focus on customer retention after ownership resolution;
- Must not lose momentum as it returns online
ICELAND
Management needs to focus on customer retention as ownership battle is resolved
Recent key events
- Another year of growth as buyout is completed
- Proposition & customer penetration
- Penetration deepest among DEs
Financials
- Seventh consecutive year of growth as profits reach record level
Space
- Space expansion continues as high street failures aid openings
Sector performance - food & grocery
- Frozen food focus reaps rewards
- Space allocation
- Market shares
- Market share steady as Iceland battles rivals
Outlook
- Must not lose momentum after another impressive year
METHODOLOGY
Verdict company briefing
Financial information
- Market size calculation
- Sales density calculation
Further reading
Ask the analyst
Disclaimer
TABLES
Table: Iceland company information 2012
Table: Iceland retail proposition 2012
Table: Iceland key operating statistics 2008-13e
Table: Iceland trading record 2003-13e
Table: Iceland UK store profile 2003-13e
Table: Iceland space allocation 2010-12
Table: Iceland space allocation 2010-12 continued
FIGURES
Figure: Iceland fascia 2012
Figure: Visitor share by demographic group 2012
Figure: Iceland main user and visitor share 2007-11
Figure: Iceland UK sales and y-o-y change to March 2008-13e
Figure: Iceland UK operating profit to March 2007-12
Figure: Iceland l-f-l, total sales and space growth 2007-12
Figure: Iceland food & grocery sales for calendar years incl VAT 2008e-13e
Figure: Iceland food & grocery sales per sq ft for calendar years incl VAT 2008e-13e
Figure: Iceland space allocation changes 2010-12
Figure: Iceland space allocation percentage point change 2010-12
Figure: Iceland share of market held by food & grocery retailers 2008-13e
Figure: Iceland share of market for food & grocery products 2008-13e
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
