Toys, TVs and clothes at Iceland
Plans for the frozen food retailer have been revealed in "alternative business plan" sent to potential buyers of the chain store.
Following news that Sainbury's is planning to grow its market share for non-food items, it is reported that Iceland's new owner could also be planning to boost growth by expanding into non-grocery sales. This could include electrical goods, homewares, clothing and video games, which are already proving very profitable for the big supermarket chains.
The news comes from a commercial report that strategy consultants OC&C, have issued as part of a package of more detailed financial information sent to bidders as the second round of Iceland's auction kicks off.
According to the Daily Telegraph, the document also tells potential buyers how to achieve a faster roll-out of new stores, though this would not apply to Asda and Morrisons which have to sell off at least 200 stores to overcome competition hurdles. Bidders, which also include Bain and BC Partners, also received a financial report from accountancy firm Ernst & Young.
Iceland's founder Malcolm Walker is understood to have capped his own offer at £1.12bn, although political pressure from creditor Landsbanki is thought to prevent a sale at such a low level. Mr Walker has first right of refusal for the supermarket chain where he and management hold a 23% stake. Iceland is expected to make £230m of profits this year.