Iceland managing director Richard Walker is urging businesses to “step up and do more” for their customers as the cost-of-living crisis continues to take hold across the UK.
Walker – who is well-known for being an outspoken member of the grocery industry – is calling for the business community to “do whatever they can and whatever their business models allow them to do”.
“It really is a time for business to step up and do more, but also for business to work with government to help form good policies and help policies that are already in place,” he told The Leader.
“[Businesses need to] advocate and push as far as they can to help customers, as it really is very serious.”
Talking in more detail about the cost-of-living crisis, Walker said that value supermarket Iceland has also seen customers moving away from more luxury categories as they choose the cheaper ranges instead.
He also echoed other supermarket reports of “customers telling the cashier to stop when it hits £40”.
Speaking in more detail about the situation, Walker said: “It’s very serious as some of our customers who might have only had £25 per week to spend on food were struggling before the cost-of-living crisis, so now I really do worry how they will get through this.”
READ MORE: Half of adults buying less food as cost of living continues to rise
For it’s part, Iceland has implemented several pricing strategies and schemes designed help to ease the strain on families’ finances, including an increased staff discount and a variety of headline-grabbing online deals such as essential lines for 1p.
The supermarket has also promised to maintain key low-price points and is holding the £1 price point for frozen value foods until the end of 2022.
Walker said the move will “cost the company millions”, but added “we can really step up now even if it means foregoing profit in the short term.”
“The cost price to us is going up and up but we are not going to pass that on to the consumer because that £1 price point is so important.”
Walker believes that being a family-run company allows Iceland to be more agile than other big companies which have an “expectation around profit and outside shareholders”.
Iceland also recently launched a 10% off discount day for shoppers over the age of 60. According to Walker, the scheme has been “massively successful” with nearly 800,000 customers taking advantage so far.
In a recent survey by the Office for National Statistics, nearly nine in ten people said that their cost of living had increased, with almost half spending less on food. Walker predicts that the situation is “going to get worse before it gets better” with the full effects of rising energy bills expected to be felt later in the year.
According to gov.uk the government has spent over £37 billion on cost-of-living support, aiming to help the millions of households across the UK who are struggling to meet rising costs.
Walker believes that investment “needs to be stepped up even further”, adding that the government has “done a lot for consumers, but perhaps more help is needed for businesses”.
He went on to point out that businesses benefitting from financial help will be able to pass that on, which will “ultimately help consumers as well”.
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