Iceland’s boss Richard Walker has warned the frozen food retailers profits will be “significantly down”, as the battle of costs between supermarkets and suppliers continue.
Speaking to Good Morning Britain, the newly appointed executive chairman of the supermarket urged bigger suppliers to “take more of the hit”, as burdens of food inflation falls on customers.
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The news comes as official figures by the Office for National Statistics (ONS) revealed food prices have risen almost 17% in the past year.
“Everyone has a part to play and it can’t be a one-way street,” Walker said.
“It’s fair to say our our supermarkets are really competitive. We operate on very low margins, there isn’t really a lot of room for manoeuvre, and if your prices are higher than the competition’s shoppers will simply shop elsewhere.”
The news comes as Iceland announced an extension of its £1 price freeze throughout 2023, running across hundreds of frozen products in a bid to support customers as the cost-of-living crisis continues to ramp up.
The supermarket has also confirmed that it will continue to offer its over 60s discount every Tuesday.
