Iceland executive chairman Richard Walker has cheekily apologised to loan sharks for the success of the supermarket’s microloan initiative.
In a tongue-in-cheek video published on X, the platform formerly known as Twitter, Walker spoke about the successful impact the scheme had on customers.
The grocer had now lent a total of £7.2m to 28,000 customers since the scheme’s inception last year.
Walker begins the recording by saying he was “surprised” that Iceland Food Club has negatively impacted one group of people despite the brand ethos being ‘Doing it Right’.
He then goes on to say: “Sorry loan sharks. Sorry if the Food Club has taken £7 million out of your pockets. Sorry if that means that your Christmas is less merry.”
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The initiative was originally launched alongside the Iceland Food Club in conjunction with lender For for You in August 2022, in a bid to help more customers struggling with the cost-of-living crisis.
The frozen food specialist said it has since helped 71% of customers be less likely to fall behind on rent and council tax, while also helping 80% fewer shoppers report borrowing money from illegal lenders.
Commenting on his video, Walker said: “There is a serious point behind this film – micro-credit works. And it can be vital at Christmas to protect vulnerable consumers from loan sharking.
“Food retailers are on the front line with our customers in the cost-of-living crisis, and we should take care as a sector to help them in difficult times. That’s why I’d like to see more supermarkets offering no-cost micro-credit to people who are struggling.
“Government and the Financial Conduct Authority also need to commit more resources to encouraging alternative, safe and affordable forms of credit, that can make a real difference to people’s lives. Iceland is doing its bit: ministers and regulators need to do the same”
Fair for You CEO Simon Dukes added: “Iceland have gone above and beyond to work with Fair for You to make the Food Club interest-free for their customers. We’re delighted that other retailers are interested in following Iceland’s lead in finding innovative ways to help people afford household essentials with access to affordable and responsible credit.”
