Iceland will launch click & collect trials next year as it continues to develop its multichannel offer.

The retailer’s e-commerce boss John Mackie told The Grocer the frozen discounter was currently looking into new store locations with enough space for click & collect. It wants to open 50 new stores in 2014 to add to its estate of 819.

“We need to be there with click & collect as it is one of the fastest-growing areas on the high street,” Mackie said. “We will certainly do something next year, but as we can’t match the big retailers on space, we have to look very closely at the new units we take on.”

Since relaunching its online service in May, Iceland has handled 250,000 orders. Mackie predicted orders would hit one million next year and that the service would be rolled out across Iceland’s estate by the end of 2014.

“Iceland currently has 280 stores capable of fulfilling online orders and we will add a further 260 early next year - that will give us 84% coverage of the UK. The next phase will be to transfer our Bonus Card and redemptions for coupons online.”

However, online expansion has come at a cost for Iceland customers, with the minimum order for free delivery increasing from £25 to £35 this week.

“Most customers are ordering more than £35 anyway and this increase will ensure the efficiency of our online picking operation it won’t go up any more,” Mackie said. “I would expect around half of Iceland customers to be ordering online by the end of 2014.”

Mackie also predicted Iceland’s home delivery service, which carries out 180,000 transactions a week, would see a 45% uplift this Christmas.

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