The UK’s Big Food Group has reported a fall in second-quarter sales amid tough trading conditions in the food retail market.
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The company said group like-for-like sales for the 13 weeks to 1 October 2004 were down 3.3%. For the 26 weeks to 1 October, like-for-like sales slid 1.9%.
Big Food Group said second-quarter like-for-like sales at its frozen food retail chain Iceland fell 3.9%, while like-for-like sales at wholesaler Booker fell 4.1% and like-for-like sales at Woodward Foodservice rose 27.3%.
Over the 26-week period like-for-like sales fell 2.8% at Iceland and 2.6% at Booker, but rose 29.6% at Woodward.
Big Food Group said the consolidation in the food retail sector had continued to create a tougher trading environment and increased competition in the company’s key markets over the period. In addition, the group benefited from warmer weather in the corresponding period last year, which boosted sales of soft drinks and other seasonal products in the year-ago period. In contrast, the weather this summer has been very poor with August being the wettest on record.
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By GlobalDataHowever, the company said strategic progress had been made on all fronts with further advance in the Iceland refit programme, the expansion of the Premier fascia at Booker and the continued growth of Woodward in the foodservice segment.
At Iceland, 45 refits were completed and, together with one new store, 231 stores are now trading in one of the new formats. Conversions have been carried out at most of the higher sales density stores suitable for the convenience format and the programme is now centred on more typical frozen food oriented Iceland locations.
“Trading has remained tough in the food sector in recent months for both retailers and suppliers. We now look to the important third quarter where our plans for the Christmas period will be implemented with determination to provide our customers with a bigger and better Christmas value package this year whilst exploring the approach from Baugur,” said chief executive Bill Grimsey.
