In 2021, the pandemic is still prevalent as well as the end of the
Brexit transition period, adding more pressure to the UK economy. Brexit and the pandemic have prompted consumers to spend more cautiously, looking for alternatives to fill their needs. Iceland Foods has helped customers during these difficult times in many ways. We will look at the reason behind shopper shifts towards Iceland and how the retailer has made a real impact during 2020. We will discuss the continuous adaption and adjustments the retailer is making to keep up with demand, ethics and affordability.
Economic consequences of COVID-19
According to the
Resolution Foundation, 54% of adults in families who fell under the ‘lowest paid’ category took greater loans from March to June to pay for everyday items, such as food and housing. The survey conducted found that working age adults in the UK were affected greatly by the coronavirus crisis, which has been detrimental to many jobs, incomes and living situations, especially those in the lowest income bracket. Families had less money to spend, and as a consequence, are looking at alternative ways to meet their needs. Shoppers have increased the purchase of
frozen food, as it is more affordable and lasts longer. This has benefited Iceland, as the frozen food retailer
increased by 22%,
making £1.7 billion from April to September 2020.
How have shopper behaviours shifted toward Iceland?
Iceland is a UK leader in frozen food, running over 950 stores across the country. Their online shopping service has won multiple awards. They have a 20+ year reputation for being a family-friendly, cheap and cheerful store for weekly shopping that meets the daily needs for fresh, chilled, frozen food and groceries.
There are different ways
Iceland has been able to help customers during this difficult time. One of the services include home delivery of in-store purchases over £25.
Selling quality food at an affordable price is a priority for the retailer.
They have also taken part in the Healthy Start Voucher initiative, providing individuals and families with free frozen vegetables in its stores across England, Wales and Northern Ireland, which is available until the end March. In Scotland, the same offer falls under Best Start Foods card. By participating in this initiative, Iceland can offer families with nutritious food at a good value.
Iceland’s sustainability and ethics
Consumers have become increasingly more concerned about sustainable living and ethical practices, according to
UK Food Trend Report in 2019. The report showed that 75% of 1,000 UK shoppers surveyed, would like to see supermarkets providing only
ethical and sustainable groceries
in their shops.
Iceland has taken these concerns into consideration, working hard to live up to the principles of becoming more sustainable and sourcing ethical products. In
January 2020, Iceland was the first store in the UK to launch a trial to
reduce up to 93% of plastic packaging. This gave shoppers options in buying 38 different fruit of vegetables plastic-free or reduced plastic content packaging. In response of consumer awareness, this trial is expected to reduce seven tonnes of plastic. It is important to add that Iceland was the first retailer to commit to remove plastic by 2023 on its own label.
In
May 2020, Iceland announced
food waste had been reduced by up to 2,500 tonnes
by distributing surplus food given to store colleagues in around 1,000 stores, donating it to local communities, and converting it into animal feed. Through community networks, 157.8 tonnes of surplus food was given to people in need under other initiatives.
Iceland reduced their food waste by up to 2,000 tonnes in 2020.
Iceland is taking extra steps, not only reducing carbon from operations, but inviting the government and other businesses to join forces in taking action in the face of the climate and environmental crisis we are all living in.
Another important achievement was the commitment to
remove palm oil
from their own label products. Palm oil is one of the main causes of deforestation and a driver for extinction in species such as the orangutan. While some non-Iceland products might contain palm oil, they prefer other supply chains to have more sustainable sources, stopping further deforestation.
Adjusting to shopper changes
While 2020 has proven to be a challenging year, Iceland is committed in creating and supporting plans to increase their environmental responsibility as well as helping their shoppers through the pandemic. This has been done by continuously caring, not only about their customers’ financial needs, but also offering them the best quality products. Iceland’s goal to become a carbon neutral business by 2023 has displayed that they are concerned about the planet, and are falling in line with the increasing changes in the ethics of shoppers. The retailer has proven that it is possible to keep profits high while helping their customers, the community and the environment.