Spanish grocery retailer Eroski saw its revenue fall 1.1% in the first half of 2010 due to “domestic deflation”.

The company said today (1 October) that revenue reached EUR3.7bn (US$5.08bn) for the half.

Nevertheless, Eroski saw its half-year losses narrow. The retailer posted a EUR34m pre-tax loss for the six months ended 31 July, a 50% reduction on the same period of 2009, which the company said “expressed the clear path to improved profitability”.

EBIT reached EUR50m, an improvement on the EUR6.45m posted in the first half of 2009. The company added that, over the six months of 2010, it has generated cost savings of EUR41m.

Eroski said it has managed to maintain its “competitive position” in the market and has reduced fresh fruit prices by around EUR20m.