Safeway reports slow sales and flat profits

British supermarket chain, Safeway, says like-for-like sales slowed during the first quarter while profits remained flat.

British supermarket chain, Safeway, says like-for-like sales slowed during the first quarter while profits remained flat.

The supermarket group is currently at the centre of a five-way takeover battle.

The company, whose future remains in limbo while competition watchdogs conduct an investigation into its proposed takeover by four rival supermarkets, says sales fell 0.6 per cent in the 12-week period.

Like-for-like sales had been ahead by 0.8 per cent in the first few weeks of the year, but Safeway predicted this would fall back against the strong growth in the comparative period last year.

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Updating shareholders at its annual meeting, Safeway said last year's sales had benefited from the football World Cup and Queen's Golden Jubilee as well as the launch of four Safeway megastores.

Chief executive Carlos Criado-Perez said: "We have made a solid start to the year, despite the distractions of the corporate situation, and we are achieving our objective of maintaining a broadly stable trading performance in Safeway."

Total sales during the first quarter grew by 1.1 per cent .

PA