UK grocery retailer Somerfield said today (12 December) that it has reversed declining like-for-like sales and increased earnings thanks to ongoing investment in its store portfolio.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company said that full-year EBITDA rose to GBP226m (US$338.5m) in the fiscal year ended 28 April, up from GBP218 booked the previous year.
Somerfield said that a “significant ongoing investment” in its stores led to an increase in sales during the period.
In the 12 months, the company rebuilt 60 forecourts with an investment of GBP20m, invested GBP65m in remodelling stores and rebranded the entire Somerfield chain.
These improvements resulted in an increase in like-for-like sales excluding fuel of 2.5%. This compared to a decrease in like-for-like sales, excluding fuel, of 2.4% in the previous year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe retailer revealed that it has maintained this momentum going into the first half of this year, ended 8 November. During the six-month period, Somerfield saw same-store-sales rise 5.4%, outpacing the industry average of 4.9% growth.
“Somerfield continues to benefit from the strong execution of our turnaround strategy. Our clear focus on giving our customers what they want has delivered industry beating like for like sales growth for the first half of this financial year,” Paul Mason, chief executive of Somerfield, said.
During the period, Somerfield reached a deal that will see The Co-operative Group acquire its smaller rival for GBP1.6bn. The companies have said that the merger will create a strong fifth player in the UK grocery retail sector.
“This transformation of Somerfield places us in the best possible position to benefit from the strong strategic fit and shared vision that the acquisition by the Co-operative Group offers,” Mason added.
