The food WAREHOUSE is one of the fastest growing retail park outlets. But can it take on Aldi and Lidl? Property Week reports. 

food WAREHOUSE, from Iceland, focuses on bulk buys, value packs and pallet deals that showcase Iceland’s latest products. ‘We didn’t know if it would just be an innovative lab for the core Iceland stores where we could try ideas and products and ways of working, but very quickly it became apparent that this was a great, separate business model in its own right’ recalls Richard Walker, Managing Director of Iceland.

After just five years, food WAREHOUSE has 118 UK stores and, despite no firm targets being set, Walker is confident they will continue the current rate of 30 to 35 openings a year. With them offering an attractive covenant to landlords this seems achievable. The food WAREHOUSE provides a solution for a retail park site that might otherwise be sitting empty, according to Richard Curry, partner in Rapleys’ retail and leisure team. ‘They have taken the opportunity to take sites that other [food retailers] wouldn’t possibly consider and have become the focal point for those sites’ he says.

Curry adds ‘the brand has also benefited from the inflexibility of discount rivals Aldi and Lidl when it comes to store expansion, which need to have exactly what they are looking for or they just won’t do it’. However, it looks as though that is changing as their search parameters widen and food WAREHOUSE poses more of a threat. This isn’t seen as too much of a challenge by Walker however who states, in today’s market ‘everyone is a competitor’.

 


 

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