Rosh Ha'ayin-based food retailing giant Blue Square-Israel has reported revenues that increased by 1.6% year on year to NIS1,379.2m (US$295.5m), for its first quarter ended 31 March 2002. Blue Square explained that the increase was due to its additional selling space, the effect of which was weakened by Israel's difficult economic environment and the competition both from the company's own stores and those of its competitors.