Scottish frozen food retailer Farmfoods started life as a meat processor, and after a successful pilot, began expanding into retail. It had 31 freezer centres by 1988. It expanded into England, acquiring Wallis Frozen Foods and Capital Freezer Centres in the 1990s. It has a simple format, easily duplicated, making it easy to manage, and expand, and currently has around 325 stores.
While far lower than the 21.0% sales growth the retailer saw in its 2013 financial year, Verdict anticipates encouraging trading with minimal space growth in 2014. Operating margin dropped in 2013, following consecutive increases previously as the retailer invested on infrastructure and expansion
Improving sales growth by encouraging shoppers to spend more instore will help to improve market share. Introducing wider ranges, especially in ambient, will encourage shoppers to spend more in a single visit, thus improving market share growth.
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Your key questions answered
How will Farmfoods' food & grocery sales grow in 2013, and what impact will this have on market share
What are Farmfoods' plans for expansion over the coming years, and how will this contribute to sales growth
What is the best strategy for Farmfoods to adopt in securing market share growth in the future as it faces further competition from Iceland