The UK’s fourth-largest grocer has announced first quarter like-for-like sales up 3%, an improvement on the 2% like-for-like sales growth for the first six weeks of the first quarter.
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However, the group said it is now targeting underlying sales growth of 3-4%, down from the 4-6% it had previously been aiming for. Kevin Hawkins of Safeway said: “The whole sector has slowed since April and we’re now experiencing deflation again.”
A Safeway spokesman said sales had risen owing to the opening of four reformatted megastores, a petrol promotion, and the overall contribution from the group-wide store-redesign programme. The World Cup and Golden Jubilee celebrations also had a positive impact on sales, the spokesman said.
Meanwhile, Safeway chairman David Webster has defended his board’s decision to award CEO Carlos Criado-Perez a £4m (US$6.2m) incentive plan.
According to the Daily Telegraph, Webster said: “Carlos is very much the inspiration behind the resurgence of Safeway. The incentive plan is designed to retain and incentivise him and was decided on following discussions with our major shareholders.” The generous package is evidence of Safeway’s determination to keep Criado-Perez on board.
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By GlobalDataThe Argentinean has been credited with a strong start to the Safeway turnaround campaign, despite the slight dip in like-for-like sales.
The details of Criado-Perez’ incentive package were reported last month. just-food.com members click here for more details.
