A chill in the City Bill Grimsey arrived at Iceland and was angry at what he discovered. But he's getting on with the job. Organics and dotcom fascias have a shorter shelf life while ready meals will run and run, as he tells Helen Gregory Iceland chief executive Bill Grimsey acknowledges he still has to convince some sceptical City analysts about his plans for the chain's recovery. "I've clearly failed in getting my message across with them, but I'm confused as to what they expected me to say," he admits. "I'll need to talk to them again." He concedes it may be because they wanted a quick turnaround, but adds with one of his sporting analogies: "It's a marathon not a sprint." The analysts' scepticism centres on Grimsey's three-year strategy to transform the chain into the "Tesco of high street retailing", with the aim of improving availability, customer service and exploiting links with Booker and foodservice firm Woodward. Iceland's recent announcement showed that profits were down to £40m in the last 15-month period and like-for-like sales were up only 0.8%. In response, Grimsey aims to grow sales by 15% ­ a figure which the City pundits say is more than achievable. Seven months on from taking the job, he believes he's achieved a great deal through coping with "fundamentally flawed" Iceland policies. He describes the evidence of slight recovery at the chain as "green shoots coming through the surface". Grimsey obviously doesn't relish the period when, earlier this year, previous chief executive Malcolm Walker and Iceland md Russell Ford left the company, and trading statements reduced Iceland's worth, causing the share price to plummet. "In four weeks we were making a statement saying the business would make £62m." Grimsey admits to feeling angry. "I thought I was joining a £1.2bn company with £5bn turnover, but the business was worth £600m with lots of debt. "I'd just done a turnaround at Wickes and didn't particularly want another one. When the yacht capsizes you get into the water, right it and get back on course. "But the second time it happens you know it's wet and cold in there and it's not as exciting ­ it's more difficult. But you don't get up and walk away. You deal with it." He says he and finance director Bill Hoskins knew they had to go about coming up with a strategy and arresting the decline with enthusiasm and commitment for the sake of Iceland's employees and adds: "We haven't thought about it since then." Grimsey says the firm had been an entrepreneurial company without a rule book. "The framework that I wanted wasn't there ­ the operation wasn't wrong, but I need a framework of controls so buyers, for example, get things approved in the right way." Grimsey believes he knows his customers ­ C2, D and E families, shopping on the high street for meal solutions on a budget, and older people. "You have to understand what they need and telling them that they've got to have 100% organics is clearly flawed. If the buying team is just sourcing those products, then they're not doing new product development in frozen ready meals. Which is when you start to run into difficulties." Another innovation on which Grimsey is obviously not keen is the Iceland.co.uk fascia used across newly refurbished stores. He says: "I don't see any point spending money on changing fascias at this point ­ and I need to have a think about what to do with them in the future." He goes on: "The high street is a battleground that needs to be dominated by someone and Iceland is well placed to do that. "There's a range of different types of high streets around the country and a range of different consumer profiles ­ we aim to have the basic range in each of them, but with a slightly different offer tailored to the area. If we add the best supply chain to it, we can be successful." And Grimsey is unapologetic about his ruthless quest for quality staff to get the chain back on its feet ­ Asda's Mike Coupe and Brian Gaunt being the latest two recruits. He asserts: "I'm always after other people to strenghten the team as you really need star players or you can't win. But I don't just look outside. My two aims are: growing shareholder value and replacing myself." Grimsey, who looks tired and talks of day after day of hour-long presentations back-to-back, flies to Chester from his home in Radlett, Hertfordshire, each Monday morning and stays there until Wednesday. On Thursday he travels to Wellingborough for a visit to Booker. Friday is the day for store visits. But his week starts on Sunday evening when he goes through the pack of sales figures ready for the group executive board meeting on Monday morning. To cope, he meets with a mentor each week which he describes as like "having a shower". "Being chief executive is a lonely job and to talk to someone who hasn't any connection to the business is very helpful. It gives you guidance and is totally refreshing. It's a vital part of my sanity." Running at weekends also allows him valuable thinking time, while he prepares for the New York Marathon. "I'm an organised structured person and I like people to have prepared things properly for me. I don't do things on a whim." {{NEWS }}

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