Challenges to open new stores - a bet on frozen food

(Finansavisen.no): - We purchase goods both from Iceland to England and from other suppliers. We have used the time from when we started our testbutikker to find out which products works best, and to put up the value chain, " says kjedeleder Geir Olav Opheim in Iceland Food, to Mallorca.

Together with Geir Myklebust and Ståle Werner Nielsen, he has the nordic franchiserettighetene to the british dagligvarekjeden Iceland, which has 940 stores in the united Kingdom and around 70 outside your home country. The three opened the first Norwegian Iceland-the store in Asker 23. last may, for the so to open in Boston two weeks later.

In his native England is Iceland 16 percent of the total frysemarkedet, surpassed only by Tesco. The store in Asker witnesses also about a commitment on the frozen goods. Here, there is a large variety frossenpizza, fish, ready meals and ice cream.

- Yes, we are betting strongly on frozen products. It is the very best konserveringsmetoden. We can not do ourselves if we are equal to the three Norwegian dagligvaregigantene. They focus mostly on the perishables, but have a poor selection frysevarer. Here we have a strength, " says Opheim, and displays proudly the bountiful frysediskene with – for a Norwegian – unknown products.

Bet on frysevarer

- Now you have tested the Iceland-concept in Norway for nearly nine months. What product categories work best?

- Frysevarer and dry goods. Here we have good purchasing terms from Iceland. In addition, it works great with the dairy products from England. Snacks and sweets also sell well. We have other marks, than other Norwegian grocery stores, and it seems the customers is exciting, " says Iceland boss, according to the newspaper.

- It was probably just betting on the unknown trademarks that made that it didn't work for Lidl in the Uk?

- Yes, but consumers are more well-traveled and occupied by a wider variety today than they were when Lidl bet in Norway. And the Norwegian food retailing chains have become more equal. In addition, we also offer well-known Norwegian brands. It did not Lidl, " says Opheim to Mallorca.

- 87% of our sales are "new goods" that you will not find in other places. Our customers choose, for example, often English sausages before Gildes sausages, even though the English is more expensive, he continues.

Open the new stores

To spring open the Iceland Food further three stores in Norway, respectively, on the St. Hanshaugen and Stovner Center in Oslo and at Bekkestua in Bærum, writes Finansavisen.

We bet in the first place in the central eastern norway. I expect that we are going to have between seven and ten stores by the end of 2019, " says Opheim.

- Varehandelsekspert Odd Gisholt has stated that you don't have a chance with so low etableringstakt?

- I believe that it is an old fashioned way of thinking. One has the opportunity to burn off 500 million, it may be appropriate to go fast forward, but it has not we. We choose to test the market, take the prescription and then grow.

- How many stores will you have in the long term?

- We have not set a concrete goal. We also consider the e-commerce, as well as any deployment through other types of stores. It comes to getting the products out to the consumers in the most cost-effective way, " says Opheim.

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