Iceland to continue online expansion

Supermarket group Iceland will roll out its online retail service to over 300 further stores this financial year, with the aim of ultimately providing the service to around 85% of the UK's population.

The frozen food retailer launched its online food service last year and by the end of March it was serving 280 stores nationwide. The online retail offering – which sees orders fulfilled by a customer's local store – is expected to be operating in around 600 Iceland stores by March 2015.

A spokesperson for the supermarket said the business is pleased by the initial success of its online operation, revealing that it has helped the retailer generate new customers in recent months. The eCommerce division sits within the company's Delivered Sales department, which includes the company's long-running home delivery service and is responsible for 200,000 deliveries per week on average.

Plans surrounding Iceland's online evolution came as it revealed its full-year results for the 12 months to 28 March 2014. Total sales were up 2.7% to £2.71 billion, but like-for-like sales were flat and adjusted EBITDA was down £24.1 million to £202.2 million, following various investments made by the retailer during the course of the year.

Malcolm Walker, Iceland chairman & CEO, said: "This has been a year of major investment for Iceland both at home and overseas.

"In the UK we accelerated our expansion programme with the opening of 46 new stores and also rolled out our online shopping offer to 280 stores. Overseas we began to serve important new export markets in South Africa and the Middle East, acquired the formerly franchised Iceland stores in the Republic of Ireland and opened two additional stores in the Czech Republic."

Iceland's online operation, which was built by Portaltech Reply, offers free delivery on all orders of £35 or more. The company's online retailing arm was further extended in November 2013 with the launch of Iceland Appliances, in partnership with the recently-listed electricals retailer,

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