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EDITIONS
Thursday, 28 November, 2002, 16:37 GMT
Better sales for struggling group
Somerfield store
Somerfield's chief executive left in October
Sales at supermarket chain Somerfield have improved strongly at its refurbished stores.

A spokesman for the Bristol-based firm said its refitted shops had achieved a sales upturn of 22% following their launch.

In the second year after refurbishment, sales were still up by 10%.

The report comes as the group continues with a three-year recovery programme.

Somerfield lorry
The distribution chain has struggled since 1998
In July, the group unveiled plans to refit a further 100 stores after sprucing-up 46 supermarkets with a modern feel and added fresh food.

The group would give no further update on current trading on Thursday but the news helped lift shares a penny to 70p.

Somerfield has struggled since 1998, when its �1.2bn merger with discount chain Kwik Save hit problems.

Difficulties integrating the business led to a series of profit warning while stiff competition from rivals such as Asda caused further problems.

Stores overhauled

The group has tried to win back customers by returning Kwik Save to its discount roots and overhauling Somerfield stores.

But in October nearly �200m was wiped off its value after it announced chief executive Alan Smith was leaving.

Since Mr Smith's departure, executive chairman John von Spreckelsen has taken sole charge.

Somerfield has a total of around 1,300 stores, including its Kwik Save outlets.


Click here to go to Bristol
See also:

13 Nov 02 | Business
13 Nov 02 | Business
11 Oct 02 | Business
10 Oct 02 | Business
09 Oct 02 | Business
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