Safeway said that amid all the uncertainty surrounding its future and possible takeover sales were “stable” in first six weeks of its new year and fourth quarter.
On a like-for-like basis, adjusting for the different timing of Easter, annual sales grew by 1% with new space contributing 0.7% of sales growth.
Safeway noted for the first six weeks of its year like-for-like sales rose 0.8% when adjusted for the late timing of Easter. While in the fourth quarter like-for-likes fell 0.1%
Gross margin reduced by 0.9% of sales in the second half and by 0.2% for the year.
The group said it had put in place “appropriate measures” including £6m of loyalty payments to keep key staff at its head office.
Safeway is the target of a five-way takeover bid. Morrisons’ £2.9m offer is the only bid on the table so far, out of Asda, Sainsbury, Tesco and retail entrepreneur Philip Green.
Analyst Mark Hughes at Numis said that Safeway’s like-for-likes had shown a marginal improvement although margins have been under pressure.
He added: ”This is a credible performance for a business ‘up for sale’ and we do not believe Philip Green now has any excuses not to get the bidding process underway.” And concluded that Numis still backed a takeover of the supermarket by Wal-Mart/Asda.
Chief executive Carlos Criado-Perez said the results had been achieved in challenging circumstances.
Safeway said £230m would be spent on capital projects this year, down 26% on last year as a result of the company's decision to slow down the re-format programme.
For the year to March 29 pre-tax profit fell to £335m from £355m last year on sales which rose 1.3% to £9.5bn.
On a like-for-like basis, adjusting for the different timing of Easter, annual sales grew by 1% with new space contributing 0.7% of sales growth.
Safeway noted for the first six weeks of its year like-for-like sales rose 0.8% when adjusted for the late timing of Easter. While in the fourth quarter like-for-likes fell 0.1%
Gross margin reduced by 0.9% of sales in the second half and by 0.2% for the year.
The group said it had put in place “appropriate measures” including £6m of loyalty payments to keep key staff at its head office.
Safeway is the target of a five-way takeover bid. Morrisons’ £2.9m offer is the only bid on the table so far, out of Asda, Sainsbury, Tesco and retail entrepreneur Philip Green.
Analyst Mark Hughes at Numis said that Safeway’s like-for-likes had shown a marginal improvement although margins have been under pressure.
He added: ”This is a credible performance for a business ‘up for sale’ and we do not believe Philip Green now has any excuses not to get the bidding process underway.” And concluded that Numis still backed a takeover of the supermarket by Wal-Mart/Asda.
Chief executive Carlos Criado-Perez said the results had been achieved in challenging circumstances.
Safeway said £230m would be spent on capital projects this year, down 26% on last year as a result of the company's decision to slow down the re-format programme.
For the year to March 29 pre-tax profit fell to £335m from £355m last year on sales which rose 1.3% to £9.5bn.
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