Iceland is planning a new discounter format, launching a new concept store on 2 September in Stoke-on-Trent offering exotic products including kangaroo steaks, crocodile burgers and shark steaks, and premium foods like whole salmon.
The new store, called The Food Warehouse, will also offer items by the caseload, including 5kg sacks of petfood, 10-litre bottles of cooking oils and other bulky wholesale-style packs, alongside the standard Iceland range.
The first store will open on the site of a former Comet in Trent Vale and three more are tipped to follow, in Wrexham, Cardiff, and on the Old Kent Road in London.
A source familiar with the situation said Iceland was working on a 4.5% cost to sell, and “conservatively” estimated the first concept store would hit weekly sales of £100k per week. Iceland also plans to spend £25k-35k on advertising Trent Vale.
The Grocer understands the idea arose following successful trials selling products by the case in three existing Iceland stores with car parks. It is now looking to build on this by opening concept stores under the new fascia. The first is set to employ at least 25 people, according to Staffordshire job centre.
Iceland declined to comment.
Last month, Iceland CEO Malcolm Walker announced a 2.7% rise in group sales to £2.71bn and referred to the “major change” taking place in the UK grocery market, characterised by “very strong growth” at the discounters and “good progress by more upmarket specialists.”
Last week, Iceland emerged cheapest in its first guest appearance in The Grocer 33 price survey, knocking Asda into second place.