Grocery Market Price Positions – September 2013
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Analysing Iceland’s Online Prices
After a break of seven years, Iceland has re-introduced online shopping to its customers as part of an overhaul of its e-commerce website. The frozen-food retailer has been running a grocery shopping trial since May this year and has confirmed it will roll-out the service nationwide.
Brand View has been tracking prices on the Iceland website since its launch and this Insight takes a deeper look at price positions in the Grocery market between Iceland and the major UK multiples. The following Price Index shows the relative price position of Iceland and the major UK multiples in the Grocery market.
- The Index shows that every retailer indexes above Iceland, meaning Iceland is the least expensive retailer on all like-for-like products.
- Whilst the Price Index between Waitrose, Sainsbury’s, Tesco, Morrisons and Asda has a relatively small variance, between 3 and 5 per cent, Iceland maintains a significantly lower price position, sitting 7 per cent cheaper than Asda.
Comparing Iceland and Asda
Perhaps most surprisingly, the Price Index difference between Asda and Iceland is driven by Iceland’s lower price positioning in Ambient Foods and Chilled Foods rather than Frozen Foods, which is currently 4 per cent more expensive than Asda.
- Frozen Fish, Frozen Sausages and Ice Cream are all more expensive in Iceland than Asda
- Frozen Fish is 45 per cent more expensive in Iceland than Asda
- Eggs, Baking, Snacking, Chilled Pizza/Garlic Bread and Chilled Ready Meals are significant in making Iceland the cheaper retailer.
The following figures are based on equivalent or comparable products. The green bars indicate where Iceland is more expensive, while the red bars indicate where Iceland is less expensive then Asda.
As you would expect, Iceland’s top two largest categories are in the frozen category: Frozen Ready Meals and Frozen Meat. Meanwhile, Asda’s top two largest categories are Wrapped Bakery and Cooking Sauces.
- Only 27 per cent of Iceland’s products are in the Frozen sector, meaning that 73 per cent of Iceland’s range is actually Non-Frozen
- Whilst Asda has a much larger range of Frozen goods, it only makes up 7 per cent of its total range.
- Of the 58 frozen fish lines in stock at Iceland, 9 are also stocked by Asda. For these lines Asda is selling them at up to 50 per cent cheaper off-promotion.