UK: Iceland to revise role of BOGOFs, meal deals, as sales share unsustainable
UK frozen food giant Iceland has revealed that it will be revising the future role of price promotions, BOGOFs (buy one get one free) and meal deals within its retail outlets.
Speaking at an Institute of Grocery Distribution (IGD) trade briefing in London yesterday [Tuesday], Iceland buying director Karl Martin explained that it was essential that the group readdress the balance with regard to the amount of sales driven by deals.
Iceland is renowned for its "feel the deal" approach to generating sales. BOGOF promotions are regularly rotated, and popular "meal deals" offer all the key components of a Sunday roast, for example, at a discounted price. But now over 45% of turnover is generated in this way.
Sara Jamison, Iceland's marketing director, added that the store itself is responsible for driving consumers to pick out and rely upon such deals, having let pricing get out of line while the group struggled with the poor implementation of an organic strategy last year.
Such a position is largely unsustainable however and Martin explained, "we are investing too much margin" in these kinds of offers. The ideal would be to reduce the figure to have around 35-40% of sales driven by promotions.
Martin added that the group would be "building a structure and framework around a hierarchy of promotional activity in the store", and that Iceland's suppliers would be playing an important role in developing that strategy.
The organic market appears to be going from strength to strength, especially if this year's BioFach exhibition is anything to go by. With over 2,000 exhibitors from 70 countries and more than 30,000 v...
Natraceutical, a spin-off of Spanish food group Natra-Zahor, has unveiled ambitious expansion plans, spurred on by growth in the functional foods market. With such high levels of interest in healthy f...
The Australian state of Victoria is investing in a programme to identify new opportunities for its food and agriculture industries. As part of this initiative the government conducted extensive resear...
Innovation is king - or is it? Fear of legislation or simple lack of imagination has depressed innovation in the food sector for a couple of years. Brand extensions and me-too copycats are not the sam...
The European Commission has asked European Union ministers that EU member states should continue to import organic meat and other foodstuffs freely for one more year until December 2006, whilst it est...
Functional food maker Lifeway Foods has announced the introduction of its new line of all natural, organic pudding under the name 'It's Pudding!.'...
Convenience stores are outgrowing the rest of the grocery market, says industry think-tank the Institute of Grocery Distribution. It expects strong growth to continue....
Speaking at food and grocery think tank IGD's Annual Global Retailing Conference yesterday [Wednesday], chief executive Joanne Denny-Finch revealed the results of a survey of delegates showing that ov...
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Have food promotions reached tipping point?
- ABF on Brexit, M&A and grocery - interview
- Mondelez goes beyond certified cocoa - analysis
- Nestle unveils process to cut sugar by 40%
- General Mills jobs to go in business revamp
- Japan's Nagatanien buys Chaucer Food Group
- B&G acquires pasta sauce group Victoria Fine Foods
- Tyson sets up US$150m investment fund