Britain’s fourth-largest supermarket chain Safeway today [Tuesday] posted a 4.1% growth in its like-for-like Q3 sales, but its performance during the Christmas trading period lagged sector rivals.


Sales growth for the first 12 weeks of Safeway’s second half, ended 5 January, was at the lower end of analyst expectations of 4-5% growth. Third quarter like-for-like volume growth meanwhile accelerated to 5.4% from 4.3% in the second quarter, after disinflation of 1.3%, according to a statement by the chain.


Two-year like-for-like sales growth in the third quarter was over 10%.


Safeway, which operates just under 500 stores across Britain, described its performance during the Christmas period as “robust”, and pointed to “continued growth in customer numbers” and “increasing average spend from our existing clients”. All of this was achieved “despite the impact of substantially lower petrol prices” and a continuing store refitting programme.
 
“With the successful opening of our first megastore in Plymouth last December, we now have the four formats (megastores, superstores, supermarkets and convenience stores) we need to drive the business forward in the years ahead,” the company said.


Over the last year, UK supermarkets have enjoyed buoyant trading conditions, but the sector’s shares have been falling since summer. Analysts are warning that the situation cannot continue as the economy slows, and Safeway’s “high-low” pricing strategy could place it among the first to lose market share.
 
Safeway is due to release its preliminary full year results on 15 May.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.