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Iceland develops supply chain network to support store expansion strategy

Iceland develops supply chain network to support store expansion strategy

Supermarket Iceland Foods increased its supply chain footprint in the past 12 months to March 2019 to meet stock demands of an expansion in store footprint.

Under its umbrella company Iceland Topco opened 45 new stores in the UK during the period (including 31 larger stores under The Food Warehouse fascia) but closed eight stores, increasing its total number of stores to 942 UK stores. It also has a strategic alliance with The Range, where Iceland’s food offer has been introduced to nine of the home and garden centre retailer’s stores.

Iceland said it has expanded its warehousing footprint, with five multi-temperature regional distribution centres at Livingston, Warrington, Deeside, Enfield and Swindon. It secured additional warehouse capacity with the latter to accommodate the planned growth of our business through store openings.

Iceland Group CEO Tarsem Dhaliwal commented: “Within an intensely competitive UK market place, adversely affected by consumer uncertainty and the well-known pressures of changing shopping habits on the high street, we have continued to focus on investing for the future: expanding our store footprint, enhancing the appeal of our existing stores, growing our award-winning Online business, continuing to roll out new and exciting food lines that are unique to Iceland, developing our supply chain to support the growth of our retail estate, and finding new channels to sell our food through The Range in the UK and a growing global franchise and export business.

“Our sustainability initiatives over the last year have substantially raised public awareness of Iceland and enhanced respect for our brand and its values, and we are confident that this can only enhance our prospects in the longer term.”

The group announced its annual results to 29 March this year, announcing stable profits after a challenging first half of the year. It recorded a 4.5% increase in sales to £3.08bn, but emphasised that over £100m has been invested to further growth.

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