Iglo loses market shares on European mainland | RetailDetail

Iglo loses market shares on European mainland

Iglo loses market shares on European mainland

Frozen food retailer Iglo has sailed some rough seas over the last six months. The group has seen its market share crumble away on the European mainland and its sale has been cancelled by lack of interest from candidate buyers.

Loss of market share on European mainland

Iglo sold 6.1% more fish products and 5.4% more chicken products over the last six months. Frozen vegetables on the other hand lost 1%. On comparable basis the turnover was equal to last year's, but thanks to currency effects and extra sales days, turnover was 3.5% more than during the first half of 2011. The operational profit in the same period increased 12.8%, up to 180.3 million euro.

 

The most disturbing trend however was that Iglo's market share on the European mainland is crumbling away, says the Financial Times. In Italy, where Iglo bought the Findus frozen food division from Unilever in 2010, the group is getting powerful competition from private labels. A similar trend is also noted in Germany, The Netherlands and Belgium, where consumers prefer discount stores, while Iglo is not, or hardly, represented there.

 

On the British market however, still good for one third of the total turnover, Iglo was able to surf the wave of the increasing frozen food sales (+3.1%) and on top of that, saw its market shares increase. France is also back on track, while Turkey and Russia are making a strong entrance.

 

Not enough interest from buyers

Iglo's owners Permira suffered a setback this summer, as it was forced to repeal its offer to sell Iglo. In March, it had announced wanting to sell Iglo, hoping to collect 2.8 billion euro - a significant bonus for the venture capitalist, who had bought paid 'only' 1.7 billion euro for Iglo 6 years earlier.

 

Because of the crisis and the lower results of Europe's biggest frozen products label, the number of candidate buyers was disappointing. Only two, Blackstone and BC Partners, remained and joined forces, offering to pay only 2.5 billion euro for Iglo, so Permira decided to cancel the transaction.

 

 

Translation by Sanne Raspoet

Questions or comments? Please feel free to contact the editors


Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.

Strong online growth for Hugo Boss

03/05/2018

German fashion brand Hugo Boss managed growth in every region in the first quarter. Group turnover grew 5 % to 650 million euro, partially thanks to strong web shop sales.