AGM Statement
September 03 2003 - 3:01AM
UK Regulatory
3 September 2003
Trading Update for Quarter 1
Somerfield plc ("Somerfield")
The Board of Somerfield today provides an update on trading for the 16 weeks to
16th August 2003.
Overall, the performance has been in line with management's expectations.
The detailed like-for-like sales were as follows:
Quarter 1 First 9 weeks * Second 7 weeks
Store fascia analysis
Somerfield (%) +2.0 +1.1 +3.2
Kwik Save (%) -1.5 +1.1 -4.7
Group(%) +0.5 +1.1 -0.2
* as previously reported in the preliminary results announcement on 2nd July
2003
In the Somerfield fascia the increase in the number of refitted stores has
driven a strong improvement in like-for-like sales growth, also supported by
good weather. To date, 120 stores have been refitted out of a total Somerfield
fascia estate of 591. Margins have been stable.
In Kwik Save, cash sales have been relatively static over the last 4 months,
although like-for-like sales in the last 7 weeks have been volatile against
prior year comparatives. From July to September 2002, Kwik Save sales benefited
from a strong promotional programme, at a cost to margin, that resulted in
like-for-like sales of +4.4% in the second 8 weeks of quarter 1 last year. The
promotional programme was not repeated this year, with a correspondingly
negative impact on like-for-like sales, but margins have remained stable.
Investment in the new Kwik Save concept stores is at a very early stage, with
14 concept stores completed at the year end, so growth achieved from the
refitted stores has had a negligible impact on sales performance. The
investment programme is being accelerated so that by November a further 50 new
concept stores will be completed out of a total Kwik Save estate of 661 stores.
For further information contact:
Cubitt Consulting:
0777 5752400
Fergus Wylie
Somerfield plc: 0117 935 7216
John von Spreckelsen, Executive Chairman
Steve Back, Group Finance Director
END