Big Food Group says it has made a satisfactory start to the year with the performance of its Iceland chain showing further signs of improvement.
The company says like-for-like sales fell 0.5 per cent in the 13 weeks to June 27 with sales at Iceland broadly flat.
Big Food Group has refurbished 23 Iceland stores in the period, bringing the total of its new concept stores to 62.
Following a refit, the average store has seen a 13.2 per cent rise in like-for-like sales and the programme is concentrating on higher sales stores in the convenience or "core plus" formats.
The company is also planning to convert a further 100 stores this year.
BFG's Booker cash-and-carry outlets saw non-tobacco sales rise 1.6 per cent during the first quarter while tobacco was down 4.5%.
But the company says tobacco sales are now responding to a "spend and save" scheme started at the beginning of the year.
Chief executive Bill Grimsey said: "Trading in the first quarter has improved on the more positive trends we achieved in the second half of last year."