Iceland Group has identified potential savings of £15m following analysis of its suppliers.
Speaking at the announcement of Iceland's interim results, chief executive Stuart Rose confirmed reports in The Grocer (News, August 19, p4) that the group was calling in suppliers to discuss terms following its merger with Booker.
He said 118 joint suppliers of 958 products to Booker and Iceland had been identified, and these represented potential savings of £15m.
Rose added that Iceland had already held meetings with 100 suppliers.
Iceland's interims, which were in line with analysts' expectations, were completely overshadowed by interest in the progress with the merger of Booker into Iceland. Rose reiterated that "the front office the two companies of Booker and Iceland will remain separate, but back office functions will be merged producing some cost savings".
He said some joint projects between the two sides were already being trialled.
Some Booker ranges, such as alcohol, were being trialled in an Iceland store in Chester, and Iceland ranges of frozen food and Woodward catering products were being tested in the Booker depot at Chester.
E-commerce projects are also being prepared by Booker. A b2b net service, offering retailers a limited range by auction, is running.
There are also plans to set up a collection point at the Wimbledon cash and carry depot.
This will allow consumers to pick up goods they have ordered over the internet at their convenience, rather then having them delivered by post.
For Iceland, md Russell Ford said its home delivery service was launching on interactive cable TV next week.
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