A strategy consultancy firm has suggested that the new owner of supermarket chain Iceland could choose to branch out into non-food items in order to gain ground on rivals.
According to the Daily Telegraph, a report published this week by OC&C suggested that Iceland could be set to diversify by selling products such as clothing, video games and electrical goods. Asda, Tesco and Sainsbury’s make up three of Britain’s top seven clothes retailers.
The study has been sent to potential bidders ahead of the second round of Iceland’s ongoing auction. Founder Malcolm Walker, who owns a 23 per cent stake alongside other executives and has first refusal on the company, is believed to have capped his offer at £1.12bn – a level too low to satisfy creditor Landsbanki.
In addition, the report advises prospective owners on how to ensure new stores are rolled out as quickly as possible. Interested parties have also been issued with a separate document compiled by accountant Ernst & Young.
Last week, the Financial Times reported that the next round of the auction was likely to be delayed until January.
