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Scottish frozen food retailer Farmfoods started life as a meat processor, and after a successful pilot, began expanding into retail. It had 31 freezer centres by 1988. It expanded into England, acquiring Wallis Frozen Foods and Capital Freezer Centres in the 1990s. It has a simple format, easily duplicated, making it easy to manage, and expand, and currently has around 325 stores.
While far lower than the 21.0% sales growth the retailer saw in its 2013 financial year, Verdict anticipates encouraging trading with minimal space growth in 2014. Operating margin dropped in 2013, following consecutive increases previously as the retailer invested on infrastructure and expansion
Improving sales growth by encouraging shoppers to spend more instore will help to improve market share. Introducing wider ranges, especially in ambient, will encourage shoppers to spend more in a single visit, thus improving market share growth.
Reasons To Buy
Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Farmfoods
As a wholesaler or supplier, identify the potential of Farmfoods as a new retail partner by understanding its strategy
As a landlord or property agent, understand Farmfoods' expansion plans, potential for growth through expansions and sales density predictions
Your key questions answered
How will Farmfoods' food & grocery sales grow in 2013, and what impact will this have on market share
What are Farmfoods' plans for expansion over the coming years, and how will this contribute to sales growth
What is the best strategy for Farmfoods to adopt in securing market share growth in the future as it faces further competition from Iceland
1.2 Focus Must be on Expansion
1.2.1 Growth must be driven by new stores
1.2.2 Significant opportunity remains
1.2.3 Competition for retail space will continue to increase
1.3 Store Environments Must be improved
1.3.1 Simplicity is key
1.3.2 Must not let standards slip in the face of competition
2 Company Overview
2.2 Company Information
3 Recent Key Events
3.2 Company News
3.2.1 Profits fall on increased costs
3.2.2 New distribution centre announced
3.2.3 Deputy chairman and property director step down
3.2.4 Expansion plans halted as potential for acquisition fades
3.3 Store Expansion
4 Financial Performance
4.2 Current Trading
4.3 Five Year Key Statistics
5 Operating Performance
5.2 Sector Summary
6.1 Methodology: Outlook
6.1.1 Financial information
6.2 Methodology: Company Overview
6.2.1 Verdict company briefing
7.1 About Verdict Retail
Figure 1: Current (blue) versus potential (green) Farmfoods locations, October 2014
Figure 2: Farmfoods' shop floor (left) versus Lidl (right), 2014
Figure 3: Farmfoods fascia, 2014
Figure 4: Farmfoods' UK sales (GBPm) and y-o-y change (%), to December 2010-15e
Figure 5: Farmfoods' UK operating profit (GBPm) and year-on-year change (%), to December 2010-13
Figure 6: Farmfoods' sales split by sector (%), calendar year to December 2015e
Figure 7: Farmfoods' food & grocery sales (GBPm) and year-on-year change (%), calendar year to December 2010-15e
Figure 8: Farmfoods' food & grocery sales densities (GBP/sq ft) and year-on-year change (%), calendar year to December 2010-15e
Figure 9: Farmfoods' food & grocery market shares (%), for calendar years 2010-15e
Table 1: Farmfoods' company information, 2014
Table 2: Farmfoods' company information, 2014
Table 3: Farmfoods' UK trading, 2013
Table 4: Farmfoods' key operating statistics, 2010-15e
Table 5: 10 Rows, 6 Columns
Table 6: Farmfoods' UK trading record, 2005-15e
Table 7: Farmfoods' food & grocery sales (GBPm) and year-on-year change (%), calendar year to December 2005-15e
Table 8: Farmfoods' food & grocery sales (GBPm) and year-on-year change (%), calendar year to December 2005-15e
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Company Profile,Retail,Food & Grocery,Verdict Retail