British supermarket chain Safeway reported a rise in half-year profits today in line with expectations, as it benefitted from a refitting of its stores.
The group, which has seven stores in Northern Ireland, said pre-tax profit was up 8 per cent to £180 million sterling compared with forecasts of £175 million-£194 million. The dividend was raised 5 per cent as total sales grew 5.9 per cent to £5.019 billion.
Safeway, the UK's fourth biggest supermarket in market share, said stores that have been revamped are generating sales growth of 13 per cent. The programme will be stepped up in the third quarter, which may temporarily dampen sales growth.
The makeovers are devoting more space to making fresh food in-store. Refurbished stores also include cafes, bakeries, pizza ovens, dry cleaning and photo-processing services.
"Safeway is leading the industry in format development, creating exciting new stores which are delivering much higher sales per square foot and which are on track to deliver outstanding returns," chief executive Mr Carlos Criado-Perez said.