Iceland Group has suffered setbacks on supply deals with three major customers. Bhs is axing half of its instore Iceland concessions as part of a "reassessment" of its store portfolio. Iceland stores in Bhs outlets in Birmingham, Staines, Reading, Sutton and Brighton will close in April, leaving just four concessions still going. When the tie up with Bhs was announced in October 1999, it was envisaged as many as 90 Bhs stores would have Iceland foodhalls by the end of 2001, with Bhs citing food as key to its strategy. However, only 12 stores were ever kitted out with an Iceland foodhall, with trials producing mixed results. Several concessions had closed in the last 12 months. A second experiment to take the Iceland brand into selected T&S stores has not been extended beyond a handful of stores. Iceland denied the dwindling presence of its brand on other retailers' shelves was a cause for concern. A spokeswoman said there were still plenty of opportunities for the company to expand through standalone outlets: "We are confident that there is room for an Iceland in many more of the nation's high streets and suburbs and have already launched a nationwide search for suitable sites for the 80 new stores we plan to open over the next three years." Woolworths is also ending a supply deal with Booker for its Big W general merchandise stores. Spar, which has already won a supply deal for Woolworths General Store will take over deliveries of beers, wines and spirits to Woolworths' 12 Big W mega stores from March 2. Chilled foods and ambient groceries will to be dropped from Big W under the new regime. A spokeswoman said: "There are no plans to ask Spar to provide anything other than beers, wines and spirits. A limited number of confectionery and snack lines will be delivered by suppliers." A Booker spokeswoman said: "Booker will cease to supply Woolworth's General, Local and Big W stores with effect from March 2002. Many lessons have been learnt over this time, all of which will be put to good use in developing Booker's longer term delivery strategy." {{NEWS }}

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