It has been reported that privately-owned supermarket Iceland is facing a slowdown in profits and sales due to competition from Aldi and Lidl.
Figures show that in the year to March 27th sales dropped 25% at £150.2 million which is down 0.5% on the year before.
Malcolm Walker, chairman and CEO said: "This has been an exceptionally challenging year for the group, and for the UK food retailing industry as a whole,” adding “In the face of food price deflation, intense competition and significant change in consumers’ shopping habits, Iceland has continued its long tradition of successful reinvention.
"We have done this by developing a new store format, launching new product ranges, upgrading packaging, rethinking marketing and initiating a major productivity programme. The benefits began to become evident in a more encouraging underlying sales and profit performance towards the end of the year, which has put us in a stronger position to face the continuing competitive challenges in the year ahead."
The supermarket chain attributed a 4% fall in like-for-like sales to a "reduction in customer transactions, food price deflation and the cannibalisation effect of new store openings.”
In a positive outlook for the future Iceland is looking to open 20 new stores in the UK and the Republic of Ireland.
