Iceland supermarket closures
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Store Closures and Strategic Shifts
In recent years, Iceland has closed several stores across the UK, including locations in Bromsgrove, Basingstoke, Rhyl, Newport (Isle of Wight), and Bedminster. The most recent closure was the Welling store in London on February 1, 2025. These closures are attributed to rising operational costs, such as a £20 million increase in energy bills, and changing consumer shopping habits, including a shift towards online shopping.
Expansion of The Food Warehouse
In contrast to these closures, Iceland is investing heavily in its Food Warehouse format. Launched in 2014, The Food Warehouse stores are typically located in retail parks and are about three times the size of traditional Iceland shops. They offer a broader range of products, including bulk-buy options and exclusive brands like TGI Fridays, Greggs, and MyProtein
International Expansion and Partnerships
Iceland is also expanding internationally through franchise partnerships. After closing its 10 stores in the Channel Islands, Iceland partnered with Alliance to open its first-ever international Food Warehouse store in Guernsey in January 2025. This co-branded store offers Iceland’s popular product ranges and marks a significant milestone in the company's growth strategy.
Conclusion
Iceland Foods' current strategy reflects a shift towards larger, more efficient store formats that align with modern consumer preferences. By focusing on The Food Warehouse expansion and forming strategic partnerships, Iceland aims to strengthen its market position and ensure long-term sustainability in a competitive retail landscape.
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