Somerfield revealed today that its group like-for-like sales slipped by 0.4% in the 53 weeks to end April 30 after a difficult second-half.
Group sales were up 0.6% in the first half on a like-for-like basis, but fell by 1.5% in the second half.
In a trading statement issued this morning, the retailer blamed the fall on a decrease in consumer spending, the increasingly competitive trading environment and the disruption caused by its store conversion activity.
Sales at Somerfield stores have fallen by 0.1% over the year - compared with a like-for-like rise of 2% in the previous 12 months. The performance at Kwik Save was dire with a like-for-like decline of 1% over the year - with same-store sales falling more than 2% in the second half.
But chief executive Steve Back said the group’s market share was now rising following the acquisition of 111 Safeway stores - with Somerfield hitting 4.2% market share. And while that deal has been referred to the Competition Commission, Somerfield recently bought a number of forecourts from Texaco - further boosting its store numbers.
Back said the deals “have strengthened the group and will further increase our market penetration”.
Somerfield remains the subject of takeover talk - with United Co-operatives the latest to have indicated it is interested in making a bid.
Today, the co-op society said the Panel on Takeovers and Mergers had asked it to make clear that it is not intending to partner with other potential bidders in any bid for Somerfield following media reports over the weekend.
However, the society said that it reserved the right to explore any and all options available to it at the appropriate time. There could also be no certainty that an offer would be made.
Group sales were up 0.6% in the first half on a like-for-like basis, but fell by 1.5% in the second half.
In a trading statement issued this morning, the retailer blamed the fall on a decrease in consumer spending, the increasingly competitive trading environment and the disruption caused by its store conversion activity.
Sales at Somerfield stores have fallen by 0.1% over the year - compared with a like-for-like rise of 2% in the previous 12 months. The performance at Kwik Save was dire with a like-for-like decline of 1% over the year - with same-store sales falling more than 2% in the second half.
But chief executive Steve Back said the group’s market share was now rising following the acquisition of 111 Safeway stores - with Somerfield hitting 4.2% market share. And while that deal has been referred to the Competition Commission, Somerfield recently bought a number of forecourts from Texaco - further boosting its store numbers.
Back said the deals “have strengthened the group and will further increase our market penetration”.
Somerfield remains the subject of takeover talk - with United Co-operatives the latest to have indicated it is interested in making a bid.
Today, the co-op society said the Panel on Takeovers and Mergers had asked it to make clear that it is not intending to partner with other potential bidders in any bid for Somerfield following media reports over the weekend.
However, the society said that it reserved the right to explore any and all options available to it at the appropriate time. There could also be no certainty that an offer would be made.
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