>
Ambition: Richard Walker says Iceland’s annual turnover will be £4 billion
Climbing frozen waterfalls in Norway may sound like a busman’s vacation to a man who runs a frozen food chain. Richard Walker has just holidayed in Rjukan, Norway, which prides itself on being Europe’s mecca for ice climbing. His companion – and you couldn’t make it up – was a mountaineer named Kenton Cool.
The increasingly vocal boss of frozen food chain Iceland is in good spirits. It is his first interview since he officially took over from his father Malcolm, the company’s founder, as chairman earlier this month.
Christmas was a record breaker for the £4 billion family business. And if that wasn’t enough, the 42-year-old is launching a bid to join Westminster’s elite.
It’s been a busy time for Walker. His theory is that shoppers are more likely to come to Iceland in difficult times because the products can be kept in the freezer longer and are therefore less likely to be thrown away. “People switch to frozen,” says Walker. “It’s the fastest growing category in the market.” That has helped Iceland increase its share of the country’s frozen food spending, so it can now rival that of supermarket giant Tesco. The growth in demand may also be due to its reputation for competitive pricing. About 20 percent of his products cost £1 or less, he says.
Shoppers are clearly undeterred by his father’s recent admission on BBC Radio 4’s Desert Island Discs that “a third of the population of Britain love us, a third don’t care and a third of households don’t want to be seen dead’. in an Iceland’.
The chain started selling frozen products more than 50 years ago. This has since expanded to include a variety of fresh produce from bananas to baked beans. Walker says his stores are attracting more customers ‘looking for value’ and the price promotions – including a three for £10 offer on a variety of products – are hitting a chord. Attractions for those watching the pennies also include a 10 percent discount every Tuesday for the over-60s.
“On the Tuesday before Christmas, we had 300,000 customers take advantage of that offer in one day,” says Walker. “It helps retirees who are struggling.”
This optimism is a far cry from his gloomy outlook a few months ago. At the time, Walker told The Mail on Sunday that he was putting plans to open new stores on hold after the chain’s latest energy bill rose by £20m.
But the recent drop in global wholesale gas prices means its stores, which rely so heavily on electricity to run fridges and freezers, are no longer fighting to keep the power on.
“We expect our fuel bill to be lower this year. The price of energy is still uncomfortably high and much higher than before Ukraine, but at least now we can plan.
‘We try to be as energy efficient as possible. We are reducing the number of refrigerated products in our stores and adding more shelf foods, such as cans and packets. We also install solar panels on the roofs of our stores and depots,’ he says.
Iceland’s confident start to the year may dampen concerns over the company’s £550 million mountain of debt, which has fueled takeover rumours.
But he is convinced that the family will have a share in the Icelandic brand ‘for an indefinite period of time’. He emphasizes that the company will have no problem refinancing its debt when the time is right, in 2025.
“There are no hedge funds in circulation and no debt struggles looming,” he emphasizes.
He has not been awarded a seat to run in the next election, but is on the Conservative Party’s list of candidates.
His foray into politics was another source of speculation in the city, with some observers claiming it could provide unnecessary distractions.
“That’s laughable,” he says, insisting he has no intention of leaving the family business. He argues that ‘many MPs have second jobs’ – which is true, but usually not as demanding as the boss of a large supermarket.
“I think it’s important that people know what the outside world is like, what it’s like to pay wages on a Friday,” he adds.
“I will give everything, but nothing will change as far as Iceland is concerned. It is important that politicians have people who are not just in the Westminster bubble.’
On top of the world: friend of Icelandic boss Richard Walker, mountaineer Kenton Cool
Despite his privileged upbringing – with his family’s fortune worth around £250 million – Walker says Iceland has given him an “interesting barometer of Britain” through his five million clients.
“I’ve used the company to stand up and speak out on issues that matter to them,” said Walker, a Leave voter who urged former Prime Minister Boris Johnson to get down to business.
He describes his politics as One Nation Conservatism and has ambitions such as ‘investing in our high streets’ and ‘making life as easy as possible for local businesses’.
But all this begs a simple question, especially given the widespread disillusionment with Westminster.
Wouldn’t he have a better chance of helping ordinary Britons by focusing purely on running one of the country’s best-known supermarkets?
“I already have a great platform with no public scrutiny,” he admits.
“And this is something I’ve thought to myself many times. But I want to be a player – not a commentator.’
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any commercial relationship to compromise our editorial independence.