Budgens reviews after Mediacom Iceland win

Budgens Stores, the 180-strong grocery multiple, is reviewing its £1m media account out of Mediacom TMB, after the agency won the £10m Iceland media business in June.

Budgens Stores, the 180-strong grocery multiple, is reviewing its &£1m media account out of Mediacom TMB, after the agency won the &£10m Iceland media business in June.

The clash became more pronounced after Iceland announced two weeks ago that it was to offer free online shopping. Budgens is launching its own online home shopping service this summer.

Budgens is understood to be in discussions with a number of different media agencies.

Budgens’ pre-tax profits for the year to May 1999 grew by 20 per cent to &£12.6m. Like-for-like sales growth was up 2.7 per cent compared with 2.1 per cent, while group turnover was up 13.9 per cent at &£440.2m.

According to the company, profits rose as a result of an extensive refit programme. The grocery chain is also planning to open 18 new stores as part of a &£30m investment programme and develop its petrol forecourt operations.

Analysts believe that an Internet venture could help increase profits at Budgens because unlike the supermarkets, online shopping does not endanger its existing business.

Earlier this year, Budgens launched a hot food offering of take-away pasta dishes, which were tested at its central London store in Tottenham Court Road.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here