UK supermarket Morrisons sees sales slip
British supermarket group Morrisons today revealed that Safeway’s performance had continued to decline, with like-for-like sales 7.9% lower in the first half.
The chain, which acquired the Safeway business earlier this year, unveiled pre-tax profits of £121.6m (€176m) during the period, down from £131.6m (€190m) last time and in line with analysts’ expectations.
It also confirmed a “great deal of interest” had been expressed in its Safeway Compact stores and that offers were being considered.
Chairman Ken Morrison refused to comment on reports that the group was selling up to 120 smaller stores to British rival Somerfield, but said he had made no secret of "testing the market".
Morrisons had already warned that today’s profits would be affected by “short-term” problems integrating the Safeway estate.
The core Morrisons chain delivered a strong performance, with like-for-like sales 8.9% higher in the six months, while Safeway stores already converted to the Morrisons format were well ahead of expectations.
In the first 10 weeks of the second half, same-store sales at unconverted Safeway sites were 10.1% lower, while converted stores saw a 12.5% increase.
