Somerfield stores building sales
Kwik Save benefiting from refits
November 13 2003
Store refurbishments are generating sales uplifts at both the Somerfield and Kwik Save supermarket chains.
Reporting on trading in its second quarter, Somerfield said group like-for-like sales, covering both chains, were up 0.9 per cent across the 28 weeks to November 8, rising from 0.5 per cent growth in the first quarter to 1.4 per cent in the second.
In the Somerfield chain, first half like-for-like sales grew by 2.2 per cent, on an upward trend from 2 per cent growth in the first quarter to 2.6 per cent in the second.
Kwik Save recorded negative like-for-like growth across the half, down 1 per cent, with the decline slowing from a 1.5 per cent in the first quarter to a 0.2 per cent fall in the second. Kwik Save moved back into positive like-for-like sales growth towards the end of the first half, said the company.
Both chains are in the early stages of a refit progamme, with three new fascia developed for Somerfield stores ([i]see accompanying design feature[/i]) and an updated format for Kwik Save which was trialed in 14 stores by the start of the financial year.
Executive chairman John von Spreckelsen said: “The performance of the Somerfield stores continued to improve, benefiting from good growth achieved from the refit programme.
“Similarly, in Kwik Save, the store investment programme has been rolled out to 32 stores in the first half of the year which are showing encouraging growth. However, this represents only a small part of the overall Kwik Save estate of 649 stores.
“The renewal programme for both fascias is continuing with pace.”
In June, Somerfield rejected an offer for the business from Springwater, a bid vehicle established by John Lovering and Bob Mackenzie. At the time, the group pledged to speed up investment in its stores.
Springwater had agreed to sell a package stores of store to Sainsbury’s, which planned to expand its Local c-store format. A Takeover Panel bar on further approaches by either Springwater or Sainsbury’s expires next month.
