Accounting change reveals true picture at Safeway
Supermarket chain Safeway's has revealed that a change in its accounting methods has reduced second quarter sales figures dramatically.
The chain had surprised the market and beaten Sainsbury by posting a resilient 0.7% rise in second quarter like-for-like sales, compared with a 0.2% fall at its rival.
But a change in its accounting methods so that they mirrored those used by its rivals – Tesco, Sainsbury and Morrison – revealed that underlying sales were in fact down by 1.6%.
Morrison is currently bidding for Safeway’s stores.