Progressive shows supermarket strength

Perth-based Foodland (NZSE: FAL), which owns the business, says Progressive's sales for the three months ended September rose 12.5% over last year and same-store sales were up 9.5%.

The company also reports that its new Foodtown Auckland Airport store, which opened last month, is trading ahead of expectations.

In October Progressive applied once again to the Commerce Commission for permission to purchase the Woolworths New Zealand chain of supermarkets from Hong-Kong company Dairy Farm.

The group's first clearance, approved under more lenient regulatory rules, was overturned following legal action by rival supermarket operator, Foodstuffs.

Foodland's other main NZ operation is department store group Farmers, which has recently completed a rebranding exercise and has opened several new stores in locations previously held by defunct discount chain Deka.

Foodland says Farmers sales rose 3% in the third quarter although same-store sales in New Zealand dollars fell 1.9% compared to the same period last year.

"This result reflects in part the early commencement of calendar 2000 winter season clearance activity and a decline in big ticket sales following the events of September 11," FAL reports.

Over the entire Foodland Associated group sales were up 16% in the period, boosted by the Australian Action supermarket chain's purchase of 36 Franklins stores.

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