US retailer Winn-Dixie Stores has posted lower half-year losses in what could be its last financial report before its sale to local peer Bi-Lo.

For the 28 weeks to 11 January, the group recorded net losses of US$42.1m, compared to $100.8m last year. The company’s operating losses also narrowed, to $39.4m from losses of $57.3m in 2010.

Sales in the period climbed by 2.5% to $3.73bn, boosted by inflation and “sustainable merchandising and marketing initiatives”. This offset a negative impact of competitive activity and other general market factors. Identical-store sales increased 2.9%.

Winn-Dixie also improved its quarterly net losses, by 25% to $17.9m. Operating losses also narrowed, to $16.7m from $20.8m in the prior-year period. Sales edged up 2.4% to $2.14bn. Identical-store sales increased 2.5%.

The sale of Winn-Dixie to Bi-Lo in a deal worth $560m was announced in December. Winn-Dixie has around 480 outlets in five states, while Bi-Lo runs 207 supermarkets across four states.

Bi-Lo said a takeover of Winn-Dixie, which made annual losses of $70m in its last financial year, would create a business with “no overlap” geographically and one that would have a “stronger platform” to serve customers.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

For analysis of the deal, see just-food’s Talking shop column.

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now