Iceland and The Range have formed an alliance to sell the grocer’s food in the general merchandise giant’s stores.

Iceland store-in-stores will initially open in three The Range branches in the Midlands and Liverpool. They will be rolled out more widely if successful.

The food stores will be supplied by Iceland but staffed and operated by The Range.

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The Range wants to be a ‘one-stop shop’ by adding food to its offer

Iceland founder and executive chair Sir Malcolm Walker said: “The ethos of The Range – ‘to bring our customers great quality products at the most competitive prices’ – is absolutely identical to Iceland’s, so I feel that we make natural partners in this new alliance.

“We look forward to working with [The Range founder and chair] Chris Dawson and his team to make our unique food range available to more customers in a new type of location, where we hope that we can extend our appeal by reaching people who have not shopped at Iceland before.”

Dawson said: “This alliance is so exciting. The Range’s massive non-food offering under the same roof as Iceland’s unique food offering will provide customers with a ‘one-stop shop’ and access to over 80,000 different products under one roof.

“I think our customers will be surprised and delighted to view the extent and quality of Iceland’s food range.”

The tie up came as value general merchandise retailers increasingly add food to their offers. Poundland has built up its food offer over recent years and last year B&M bought Heron Foods.