Frozen food grocer Iceland is opening more branches inside household goods retailer The Range’s superstores under a “unique” partnership which has already seen more than 25 tie-ups in less than a year.
The companies signed a ground-breaking “strategic partnership” in 2018 and began opening Iceland Foods departments inside The Range superstores.
The first were in the Midlands and Liverpool, and now there are more than 25 nationally, in locations including Luton and Milton Keynes, with two more, both in Range founder Chris Dawson’s home city Plymouth, opening this month.
There is already an Iceland inside the £25million split-level flagship Range store in Derriford, Plymouth, which opened in February 2019.
Now Iceland is moving into the two other Plymouth outlets, trading from the stores in Peverell and Plymstock from September 20, 2019.
Wales headquartered Iceland said the two firms are "natural partners" while The Range called the companies’ alliance "unique".
It comes as both stores continue to expand, despite seeing difficult trading conditions impact on sales.
In July 2019 it was revealed profits at the Range fell by £4million, from £90million to £86million, according to the Sunday Itmes HSBC Top Track 100 Chart, the official list of the UK’s largest businesses by earnings.
But the retailer saw sales rise from £761million to £869million, and the number of employees leap from 8,846 to 9,524, shifting the Derriford-headquartered company up seven places to 79 in the national rankings.
The numbers, crunched by HSBC, do however come from documents filed in early 2018. But they reveal how The Range’s profits fell during 2017, a time when retail was hit by various headwinds, including internet sales and stifled consumer spending following the Brexit referendum.
Meanwhile, Iceland has reported full-year earnings were hampered by a “disappointing” first half of 2019.
Before-tax revenue slipped 8.7% to £140.1million for the year to March 29, 2019, which Iceland blamed on escalating staff and distribution costs and its weak sales performance.
But Iceland still plans to open 50 stores in 2019 including 34 under its Food Warehouse brand.
The strategic partnership sees a complete Iceland selection including fresh food, bakery and drinks being added to The Range’s existing home, garden and leisure outlets.
Mr Dawson said that introducing Iceland into branches of The Range greatly improves the product offering for customers.
The Plymstock and Peverell stores will now contain the full Iceland Foods selection, including fresh food, bakery, store cupboard and drinks.
Customers will notice changes have also been made across other in-store departments in the two stores too and Mr Dawson said: “We’re really pleased to be introducing Iceland Foods into all of our Plymouth branches. We are sure that our customers will be delighted with new Iceland offering and that they will have even more reasons to visit their local store.
The Range’s Derriford branch opened in February 2019, with the 70,000sq ft superstore already hosting Iceland Foods, in addition to a family café and a large outdoor garden centre.
The William Prance Road site is now also home to The Range’s global headquarters, cementing Plymouth as the home city, and beating heart, of the company.
Mr Dawson said: “Alongside opening new stores, it is very important for the business to continue to
develop and improve our existing stores to ensure we’re always providing customers with a fantastic choice of quality products at great prices”.
