Somerfield is latest supermarket to report improved Christmas sales
Grocery retailer Somerfield has reported strong Christmas sales driven by the performance of its smaller shops.
The chain, which last week saw its takeover by the Co-op receive the green light, said like-for-like sales for the three weeks to January 3 grew by 3.7%.
The £1.6bn takeover of the Somerfield is the biggest in the Co-op’s history and will cement its position as the UK’s fifth largest food retailer, creating a chain of around 3,000 outlets with a market share of 8%.
Somerfield’s chief executive Paul Mason said the figures provided an excellent platform for the combined Somerfield and Co-operative Group businesses.
The Co-operative Group, which merged with United Co-operatives in 2007 to create the world’s largest consumer co-operative, last month announced its 11th successive quarter of like-for-like sales growth, continuing the revival in its fortunes.
Somerfield retail director John Cleland said that sales growth in the smaller of the chain’s 900 stores was ``industry-leading“, with shops below 5,000 sq ft delivering close to 10% like-for-like sales over Christmas.
He said: “On completion of the transaction with the Co-operative Group, we will be bringing together two businesses that currently have real momentum and a shared vision to be Britain’s favourite local grocery shop.”
Supermarket giant Tesco has the biggest share (30.7%) of the UK’s £120 billion grocery market, followed by Asda and Sainsbury’s.
The Co-op has 4.2% and Somerfield 3.5%, according to market researchers TNS.
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