Iceland has sold all 27 stores it owned in the Republic of Ireland to a new owner that will operate the outlets on a franchise basis.
The new owner is The Project Point Technologies, whose director Naeem Maniar has links to a number of other grocery businesses in the country. He was previously the Iceland franchise owner 10 years ago.
Iceland stated that the move would help it focus its attention on its main UK business, which has been hit hard by rising energy costs. It stressed that the sale wouldn’t affect the employment status of Iceland employees in Ireland.
The frozen food specialist had already halted its expansion plans in the Republic of Ireland after chalking up significant losses during the pandemic. The company’s 37 stores in Northern Ireland will continue to be owned directly by Iceland.
Tarsem Dhaliwal, Iceland Foods Group Chief Executive, said: “In the ten years since we took direct control of our stores in the Republic of Ireland, we have successfully grown the business from seven to 27 stores, created a substantial number of new jobs, and built mutually beneficial relationships with many new Irish suppliers.
“However, we have now decided that it is right to focus on retail opportunities within the UK and on the growth of our export business, and to place our stores in the Republic of Ireland on the same franchise partnership basis which operates successfully in other parts of Europe.”
NAM Implications:
- Given Naeem Maniar of The Project Point Technologies was the Iceland franchise owner 10 years ago…
- …this should be a relatively seamless transition…
- …allowing UK management to focus on UK challenges.
- Best treat Iceland Ireland as a new customer that could possibly revert to Iceland ownership sometime in the future.
- i.e. maintain prices & terms harmonies…
- …just-in-case.
