Kwik Save benefits from store overhaul

British supermarket group Somerfield reported a sales lift for its Kwik Save brand today after showing signs of benefiting from a store refit programme.

The Bristol-based group, which acquired the business in 1998, said like-for-like sales at Kwik Save grew 1% in the 24 weeks to April 24 – an improvement on the 1% decline seen over the previous 28 weeks.

At Somerfield-branded stores, like-for-like sales were 1.8% higher for the last half-year period, slightly down on the rate of 2.2% seen prior to that.

The improvement comes after the group embarked on a major refurbishment, including the downsizing of many larger outlets in order to boost profits.

One-third of the group’s 601 Somerfield stores have so far been subject to refits, while around 70 outlets in the 649-strong Kwik Save estate have been given a new look and seen changes to product ranges.

Executive chairman John von Spreckelsen said: “The store renewal programme is benefiting our customers in both the Somerfield and Kwik Save fascias.”

He described the market place as “increasingly competitive” but said the renewal programme would “continue with pace”.

Today's figures mean like-for-like sales growth at Somerfield stores over the year to April 24 stood at 2% while the same-store figure for Kwik Save was 0.1% lower. Across the group, growth was 1.1% higher.

As well as the store refit programme, Somerfield said its performance had been lifted by the success of own label ranges and higher store standards.

Today’s figures come a day after Somerfield said it was to do away with the Kwik Save brand in Scotland – a move likely to cost up to 650 jobs.

The retailer will close 22 of its 51 Kwik Save outlets in Scotland while the remainder will be rebranded to the Somerfield format. A separately-owned depot at East Kilbride will also close as a result.