Iceland relaunches interest-free loans for customers to ease pressure on household budgets
ICELAND’S boss has said “food is too cheap” despite three years of rising prices during the cost-of-living crisis.
Richard Walker said the relaunch of its interest-free loans for customers to spend in-store was not because groceries are too expensive but due to wider pressures on household budgets.
Iceland set up its Food Club with charity Fair For You in 2020, and it has so far been used by 30,000 customers.
It has lent about £7million, which users pay back in weekly instalments.
Research shows that those taking part have reduced their reliance on food banks and loan sharks, and increased the amount of fruit and veg they buy.
Mr Walker told Sun Business: “I think it’s clear there’s something broken.
“Why are there more food banks than McDonald’s when we call ourselves a G7 economy? It doesn’t make sense.
“It’s not necessarily down to food prices.
“Food is too cheap in this country. Which might sound alarming, but we spend the lowest in the world in terms of share of income.”
He added: “The kitchen economy is the problem.
“It’s having to get an Uber to the shop because the bus is out of action; the price of renting; the cost of switching on the oven; the lack of childcare which means people stay at home rather than go to work.”
Industry figures showed this week that the average Christmas dinner is 6.5 per cent more than last year, three times more than headline inflation.
Mr Walker revealed that freezer-heavy Iceland’s energy bill rose by a huge £100million last year.
But the UK’s ninth biggest grocer still plans to open 20 shops over the next year, each creating 30 jobs.
Low Shein
FAST-FASHION giant Shein‘s plans for a £50billion London Stock Exchange listing are being slowed down by scrutiny of its Chinese supply chain.
The Modern Slavery Commissioner is challenging Shein over the potential use of forced labour camps in China, according to Reuters.
The firm has repeatedly said that it audits its supply chain and does not use cotton from labour camps. But its recent audit revealed two cases of child labour in its factories.
Chairman Donald Tang is understood to have met with the Treasury about a London float.
However, Shein has been accused of unfairly hurting British retailers as it does not pay tax on the goods it imports via small parcels from China.
Finances look up
BRITS are feeling slightly more confident about their own financial situation but gloom around the wider economy remains the same, according to a closely watched survey.
The overall confidence score is -17, according to GFK INDEX, dragged lower by negative views about the health of the bigger picture.
Consumers also said they were reluctant to make big purchases, which could put a lid on festive present buying.
£32m tax rise for Currys
THE Chancellor’s business tax raid will add £32million in “new and unwelcome costs” for electrical retailer Currys.
Boss Alex Baldock said the Budget “will depress investment and hiring, will boost offshoring and automation and make some price rises inevitable”.
Currys joins a growing Budget backlash that includes Sainsbury’s, Morrisons, Wetherspoons and Travelodge.
Despite the setback, Currys said its profits were on track as it geared up for festive trading amid growing demand for AI laptops.
In the UK, half-year sales grew by five per cent while total sales lifted by one per cent to £3.9billion in the six months to the end of October.
Its losses have narrowed from £44million to £10million after its growing repair, insurance and credit division boosts profit margins.
Bru chief at C&C
THE maker of Magners Cider has hired former Irn-bru boss Roger White as its new chief executive.
Mr White, who spent 22 years leading Scottish firm AG Barr, will replace Ralph Findlay, C&C’s chairman who has been filling in the chief executive role since June.
The previous boss, Patrick McMahon, left in June after an accounting error.
Mr White said: “C&C has great brands and a committed team.”
C&C said Mr White will be eligible for a £650,000 salary, share awards and other perks.
Ashley cries Boo
FRASERS GROUP boss Mike Ashley has accused BooHoo’s board of “blatant hypocrisy” in an increasingly bitter feud.
The tycoon owns a 27 per cent stake in the online retailer and is urging investors to back his bid for two seats on the board at a showdown next Friday.
He said its demands so far were “unreasonable” and believes the pushback is due to chairman Mahmud Kamani not wanting to lose influence.
Boohoo says two shareholder advisory firms recommend investors vote against Ashley.
ODEON has had 4million cinema-goers through its doors over the past six weeks, marking its busiest period since the “Barbenheimer boom of last year.
Blockbuster hits Wicked, Gladiator II and Moana 2 have all helped to pull in bumper audiences.