The budget food retailer hopes to open up to 10 new shops and relocate some existing sites to larger premises
Frozen food chain Heron has shed more about 250 staff in shops and across its warehouses over the past year though it is planning to expand with new stores. New accounts for the Hull-founded business show its workforce dropped to 5,519 in its last financial year.
The budget chain, which began life as Grindells Butchers on the city’s Holderness Road in the late 1970s and now has a network of more than 340 sites, has set a target of opening 10 new stores in its current financial year, which began at the end of March, and says the moves will create jobs. The company says it wants to expand in the North and the Midlands, though is yet to give locations.
Bosses say they want to “push out” into new areas when the right sites can be found, and that some existing shops might be relocated to better, often larger locations. Writing in the accounts, managing director Tony Dodds said: “Central to the future success of the company is the store growth plan. Whilst we are seeing a competitive landscape around the pipeline of properties, we continue to actively source new opportunities through our internal acquisition team and external networks.
“The directors have set a target of 10 new stores for financial year 2026. In addition, the company is increasing activity around refurbishing existing stores and relocating stores as opportunities arise to improve the customer experience, increase sales and customer footfall.
“The company will continue to carefully control costs which is a necessity for a discount food retailer. However, the company will also continue to invest in its infrastructure to more effectively manage its day-to-day retail operations as well as its distribution function.
“Currently under review are plans for future capacity expansion in our distribution network. This is at an early stage with several options still under consideration.”
Heron saw sales fall by 3.2 per cent and turnover decline to £546m in the year to March 29, compared with £561m in the 53 weeks to March 30, 2024. Operating profit fell from £22m to £17.5m, with bosses saying rising costs – including the recent hike in National Minimum Wage of about 9.5 per cent – had impacted its earnings.
During the year, the chain – which is owned by discounter retailer B&M – opened 14 new and relocated shops. There were eight net openings after the closure of older and under-performing sites which had come to the end of their lease.
Earlier this year, the chain’s Cottingham site was among those to re-open after revamp which included new style freezers, a new food to go meal deal range. The Spring Bank West shop in Hull was also refreshed last month. Heron said it would continue to invest in store refurbishments this year.
Elsewhere in the accounts, Mr Dodds said: “People are at the core of what we do and we recognise we couldn’t operate without the dedication of our colleagues. Our core values of colleagues, service and standards underpin everything we do.
“We encourage our colleagues to engage in our social media activity so that they are aware of our great products and offers and can help us meet a wider audience in their local communities. It is important to us that our colleagues are engaged in the product we sell and take pride in the work we do.”