Elaine Watson Iceland is embarking on a major rethink of its pricing strategy to reduce its dependence on bogofs and margin eroding megadeals, revealed Big Food Group boss Bill Grimsey. The new strategy, already being tested in some categories such as pizza and ready meals, will have more of an "EDLP spin," said Grimsey. "Iceland can't sustain its position by bouncing on from one bogof to another. Where we would have had a £1.95 pizza on bogof, now we'll have them on £1.35 each or two for £2, and that's permanent." More regular range reviews will also weed out the lowest sellers. Double digit like-for-like sales growth at new format stores in Haringey (convenience), York (core plus) and Crawley (core) were extremely encouraging, said Grimsey. "We'll do another 20 this year and 100 each year after that." The 1% increase from the new format freezer store in Willenhall was coming from a very low base, he added. Booker is also trialling new formats at Clydebank and Greenford with an enhanced fresh and chilled offer out in the main sales area rather than "tucked away in a grubby cold room," said Grimsey. "Booker's cash generation over the year has been very impressive," said Grimsey. It is also working more closely with suppliers on new collaboratively managed inventory initiatives to improve order accuracy. Analysts emerged from a meeting with senior management on Thursday feeling "cautiously positive" about BFG's prospects. Former Asda trading director Mike Coupe's presence is clearly evident in the shifting pricing policy, said one analyst. "What used to happen is that the old stores made all of their turnover in the first few metres where the deals were. The new pricing tack makes customers shop the whole store." Profit before tax, exceptionals and goodwill amortisation was £42.9m for the 52 weeks to March 29, compared to £40.1m in the preceding 65 weeks. Sales were £5.2bn compared to £4.95bn. Like-for-like sales were up 0.9% and 19.4% at Booker and Woodward Foodservice respectively, but down 1.8% at Iceland, reflecting a poor Christmas and final quarter. {{NEWS }}

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