Iceland is to launch a transactional website next year, seven years after it shut down its original ecommerce site.

The frozen food retailer is currently building the website and organising the infrastructure behind a delivery from stores model.

Chief executive Malcolm Walker told Retail Week that it will be a standalone site which shoppers can click through to from its main site,

Iceland it launched its first transactional site in 1997 but Walker shut down the site when he returned to the business in 2005.

Walker said: “We are going to do it next year. We are looking at the website now. We were one of the first to do it in 1997 but when I came back in 2005 we canned it to focus on the core business.

“Now is the right time.”

Iceland will face stiff competition in a fiercely competitive marketplace. Tesco is the market leader in online grocery, followed by Sainsbury’s and Asda.