UK retailer Big Food Group is expected to report a fall of around 7% in like-for-like sales at its Iceland Foods subsidiary in the 13 weeks to 27 September.
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This is the latest in a string of bad news for Big Food Group. Back in July the company issued its fourth profit warning after Iceland’s “everyday low price” strategy caused an 8% drop in like-for-like sales. Since the pricing scheme was introduced in May Iceland’s profit margins have decreased by 2%. The company also warned that it would report a first-half operating loss of £8m (US$12.5m), compared to the £8m operating profit it recorded the previous year.
Shares in Big Food Group are now valued at 30p, having fallen 85% from their 12-month high, reported The Business.
Iceland, which focuses solely on frozen food, is suffering from heavy competition from major retailers such as Tesco and Sainsbury.
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