Safeway has revealed that the five-way bidding battle surrounding the group has pushed down its like-for-like sales and flattened first quarter profits.
The group revealed a 0.6 per cent fall on last year's figures in like-for-like sales in the first 12 weeks. But cost cutting and a reduction in price promotions means first quarter profits are the same as last year.
Chief executive Carlos Criado-Perez said: 'We're holding it together and we continue to believe we can carry on doing so, although it will get harder as time goes on.' The update on trading came as some shareholders used Safeway's annual meeting to criticise the group's decision to recommend the merger with Morrison's. One shareholder remarked that such a move was like joining Woolworths with Cartier.
Meanwhile 90 per cent of shareholders backed the retailer's directors' remuneration policy causing surprise in the City of London. It was the first time that shareholders had the opportunity to vote on directors' pay and privileges, including payable compensation when the group is taken over and two-year contracts for directors.