Food retailer The Big Food Group (BFG) today revealed sales have continued to slide at its Iceland supermarket chain.
The Deeside-based group warned in July that the 760-strong Iceland chain would report a loss for the first half-year after being hit by a slide in sales.
The fall was blamed on moving away from promotional activity such as buy-one-get-one-free deals in favour of lower prices across the board, and saw Iceland report a hefty 8.3% slump in sales in the three-week period following 28 June.
Today BFG said like-for-like sales at Iceland for the 13 weeks to 27 September were down 7.7%, although it said margins had improved.
In a statement the group said: “Iceland continues to experience weakness in its sales performance whilst action has successfully been taken to restore gross margin.”
Shares slipped 2% in early trading following the update, down 0.5p to 27p.
Iceland said a store refurbishment programme was working, with refitted stores continuing “to impress”. The group now has 10 revamped stores trading.
Like-for-like sales across the group, when taking into account its wholesaling arm Booker which accounts for two thirds of group turnover, were down 1.5%.
The group said market growth had “slowed” during the period but its wholesale businesses had continued to trade well.
Chief executive Bill Grimsey said: “Following our statement in July, our wholesale business continues to make good progress.
“I’m particularly pleased that margins at Iceland were quickly restored, whilst the initiatives we have developed to improve sales are being implemented in store.”
EGi News 08/10/02
