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