Iceland to trial hub-and-spoke delivery model with indie retailer Stephen Thompson

Iceland is looking to trial a hub-and-spoke delivery model with independent retailer Stephen Thompson, The Grocer can reveal.

The retailer, who owns four convenience stores in Scotland, is working on a solution with the supermarket to improve the service to his Buckhaven and Greenock stores, whereby stock will be delivered from a nearby Iceland store, rather than a distribution centre.

Buckhaven, a 4,000 sq ft store that was recently converted to a dual-branded fascia with Iceland Local and Thompson’s own brand Eddy’s Food Station, stocks 26 cabinets of Iceland’s own label and licensed products. These include Greggs, Harry Ramsden and TGI Fridays, alongside products that come from Thompson’s main supplier, Costcutter.

The 3,000 sq ft Greenock site is supplied with a smaller Iceland range, filling up nine cabinets, so the store hasn’t been decorated with the same dual-branded fascia. 

Currently, however, the stores do not have the capacity to hold the level of stock that comes from Iceland’s Livingston DC, near Edinburgh, with a minimum volume of 300 cases per delivery, The Grocer understands. 

The hub-and-spoke delivery model would allow for smaller minimum drop levels.

“We’ve got a good working relationship with Iceland and they’re being proactive about how they can improve their service and deliveries to our stores,” said Thompson. ”We are looking to expand on the relationship and do more work with them, but we’ve got to get things right first before we go further.”

Eddy’s Food Station also operates stores in Larbert and Leuchars. The company, which currently employs 56 staff, plans to increase the number of stores it operates within in the next 12 months and is actively seeking more opportunities across Scotland.

Iceland was approached for comment.