Iceland drops the net
Iceland today announced it was closing its loss making Internet home delivery service.
The frozen food chain said the Web operation was being axed as part of a reorganisation by chief executive Malcolm Walker.
‘He wants to concentrate instead on core business in the stores.’ A spokesman added.
Messages were sent to tens of thousands of Internet customers telling them the service will end on April 23rd.
The move surprised the grocery sector as Iceland’s delivery service launched seven years ago once out performed all other supermarkets.
In the Internet boom of the 1990’s the service helped the group increase its profits by almost a third.
At its peak, 80,000 people a week ordered food via their computer for delivery to their doorsteps. Orders were worth £43 per customer.
About 400 job loses have already been announced at the firms main office in Deeside, North Wales.
Some of these redundancies involved staff who worked for the Internet delivery service.
Iceland spokesperson Karen Duncan said: ‘The whole of our Internet and home shopping service is closing. We haven’t announced this before because we wanted to alert out customers first.
‘Our company has already gone through quite a lot of changes and our new chief executive has to look at ways of improving the service.’
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