UK grocery retail group Somerfield has said its like-for-like sales edged up 0.6% in the first half despite tougher competition.
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The company, which operates the Somerfield and Kwik Save fascias, said like-for-like sales for the 28 weeks to 6 November rose 0.9% at Somerfield and 0.1% at Kwik Save.
“I am pleased that the group has achieved positive like-for-like sales for both its fascias. Progress has been maintained against a background of tougher competition, food price deflation and the effects of inflationary cost pressures on the disposable income of our customers. Trading for the group overall has been in line with management expectations,” said chief executive Steve Back.
“The acquisition of the Safeway Compact Stores portfolio adds considerable new space for the group and represents an excellent opportunity for us to take advantage of our proven expertise in operating smaller food supermarkets and of our national distribution network. This deal is expected to be earnings enhancing in the first full year of ownership, and while it remains early days, we are pleased with the performance of the 21 ex-Safeway Compact Stores now trading under the Somerfield fascia,” he added.
Somerfield said that as of 6 November 2004 it had 701 Somerfield stores and 523 Kiwk Save outlets, compared to 634 stores under each banner as of 24 April 2004.
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By GlobalData
