Iceland has recorded its strongest sales growth in over a year as a focus on premium products and its new format pays off, according to Kantar.
According to Retail Week, Kantar Worldpanel grocery share figures for the 12 weeks to August 16 also reveal that Sainsbury’s was the only one of the big four grocers to grow sales year on year.
Despite the 0.1% sales increase, Sainsbury’s still lost its position as Britain’s second largest supermarket to Asda because the latter’s focus on non-food items traditionally results it its market share being higher in the summer.
Iceland recorded a 3.4% year-on-year increase in sales during the period, representing its largest sales growth since a 3.6% increase in April 2014.
Kantar attributes the sales rise to Iceland switching its marketing approach to focus on more premium products through its ‘Power of Frozen’ campaign and the opening of The Food Warehouse stores, which are more than double the size of a typical Iceland shop and provide a more upmarket offer.