Safeway sales struggle amid takeover talk

British supermarket chain Safeway saw its profits fall back slightly this year as uncertainty over the group's future hit sales…

British supermarket chain Safeway saw its profits fall back slightly this year as uncertainty over the group's future hit sales, it announced today.

Profit before tax and exceptions for the year ending March 29th was £335 million sterling (€470 million), slightly down from £355 million the previous year, Safeway, said.

Second-half results had been affected by the launch from January of a string of rival bids for the chain which "created a very uncertain environment for our customers, staff and suppliers," Safeway said.

Sales over the year grew by 1.3 per cent to £9.52 billion, although with adjustment for the different timing of Easter this year the growth was only 1 per cent, the statement said.

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The group also warned sales growth was likely to slow in the coming months as it faced a comparative period last year boosted by events such as new superstore openings and the football World Cup.

Britain's Competition Commission is evaluating bids for the 480-store Safeway group, Britain's fourth-biggest supermarket chain, from supermarket rivals Tesco, Sainsbury, the Wal-Mart-owned Asda and William Morrison. A decision is expected in August.

PA