Somerfield is expected to accelerate its store refit programme following the announcement of full-year profits of £41.1 million.
The supermarket chain reported an improvement in like-for-like sales growth to two per cent for the 12 months to late-April, compared with one per cent for the previous year. The jump in profits from £25.8m was credited to the refit programme.
The UK's fifth largest supermarket chain said it was increasing its store investment budget and enlarging its refit team after noting an exodus in shoppers from unimproved outlets. A store spokesman said: "In larger stores awaiting refits we find it difficult to retain existing customers and attract new customers from big, effective competitors... In stores awaiting refits, sales performance continues to be challenging." At Kwik Save outlets, refurbishment raised store sales by nearly 20 per cent.
Executive chairman John von Spreckelsen said: "In today's competitive marketplace, we have now proved that the investment we are making in modernising our stores attracts new customers and delivers substantial and sustainable sales growth; our strategy is working."
Meanwhile, the group has also announced that it has created the post of chief executive, with von Sprecklesen to relinquish executive duties. Somerfield's finance director Steve Back will take up the chief executive post in September.
Von Sprecklesen added: "Steve's track record as finance director and his extensive retail experience ideally equip him to implement the next phases of the company’s recovery programme."
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