New industry data showing Iceland outgrowing the big four supermarkets at Christmas with festive grocery sales climbing to their highest level for four years, shows it is possible to perform well without advertising if your messaging resonates with shoppers, one leading category management specialist has argued.

Patrick Finlay, Managing Director of The Category Management Company, made the comment after Nielsen figures were revealed in Retail Week that sales at the frozen-food specialist jumped 4.7% in the 12 weeks to December 31st, making it the fastest-growing grocer other than discounters Aldi and Lidl.

“Of course, this is all subjective and depends on how you measure success,” explains Finlay.

“But if you examine performance through a lens of higher intent, you can see how Iceland’s positioning cuts through to consumers. To axe their Christmas advert with a view to focusing on lowering prices, to help families still struggling with the cost-of-living crisis, was at the centre of their Christmas media strategy. Malcolm Walker even said at the time ‘it was a no-brainer.’” 

This, continues Finlay, was neither opportunistic nor a disingenuous gesture. 

“This is typical Iceland,” he continues.  “There are few high street retailers more in-tune with their customers and, as a family run business (in probably the most competitive retail market in the world) this must be the secret to their success.”

Iceland, he says, has always placed its customers first. 

“They are constantly innovating; finding new ways to stand apart from their very noisy neighbours. Reinventing themselves, where shopper and product experience come first.  It’s as though they were listening to Sir Jack Cohen when he said...” In good times and bad, the company that works hard, that insists on offering value for money, and is not afraid to experiment and make changes, will always prosper.”

Values, and ‘value’, have always been at the core of the Iceland offer.  They were trail blazers in free home delivery, amongst the first (if not the first) to commit to eliminate plastic, genetically modified ingredients, artificial colourings, flavourings, non-essential preservatives and monosodium glutamate from their own label products. Overlay this with the launch of exclusive ranges including Greggs, Harry Ramsden, Chiquito, and TGIFriday, and it becomes easier to understand why Iceland has survived.   

“They have their finger on the pulse,” adds Finlay.  “They truly understand their shoppers and they move quickly and decisively to ensure they remain loyal.  How else could they have possibly survived?

So, fast forward to Christmas 2023 and Iceland decide to make what is arguably a very ‘brave’ decision not to advertise. But remember, Iceland have never really been on the band wagon. They have always had both eyes on the long-term prize of customer loyalty.” 

The lesson, Finlay concludes, is that whether working on a category vision, a new product sell-in, or even in day-to-day operations, the key to survival is to always keep customers front of mind, adjust when required and, as Sir Jack Cohen said, to not be afraid to experiment. 

“Suppliers and retailers need to ask themselves, what are your customers’ needs right now; is your proposition relevant to them; and how will you activate to meet their specific requirements?  Insight is at the core, a true understanding of needs, of why things are happening, how this impacts behaviour and taking the necessary steps to activate effectively.”