Sales improve for Foodland's NZ operations

Figures released Monday show that second-quarter sales at Farmers' stores grew 9.7%, including sales at the chain's new annex stores previously occupied by Deka.

Farmers' comparable store sales for the quarter rose by 5.1% but reflected the transfer of sales from existing stores in the network to the new Botany and Bayfair outlets.

Sales at Progressive supermarkets, which includes the Foodtown, 3 Guys and Countdown chains, grew 14% during the three-month period with comparable store sales rising 10.4%.

The wholesale division, excluding the Rattrays Cash and Carry business that was sold in the second quarter last year, were around 2% higher.

Throughout the group second quarter sales were 29.6% higher in Australian dollars but that included the new 40-store east coast supermarket network currently run under the Franklins brand. That acquisition helped push Action supermarket sales up 121.4% for the quarter.

After adjusting for sales to new Action supermarkets, the comparable sales increase was 12.3%.

Meanwhile the company has advised that it will include a A$3 million unusual item in its half-year result in connection with the attempt to gain regulatory approval to buy Woolworths NZ.

The company has tried a couple of times to get Commerce Commission approval for the deal but has so far been unsuccessful.

Woolworths NZ owner, Hong Kong-based Dairy Farm, says it is no longer interested in talking to possible buyers but Foodland said in January it is continuing its efforts to legally qualify as a purchaser.

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