By SIMON HENDERY
A $100 million spruce-up of Foodtown and Countdown supermarkets is starting to pay off through increased sales.
Perth-based Foodland Associated, owner of Progressive Enterprises, which runs the Foodtown and Countdown chains, yesterday reported a 4 per cent increase in sales for the three months to the end of October.
Foodland chairman Don Humphreys told the company's annual meeting that Progressive was $100 million into a $180 million refurbishment programme begun in 1998.
Last month, Progressive sold out of the Rattrays Cash & Carry wholesale business to concentrate on its core supermarket and franchise supermarket business.
Foodland's other New Zealand operation, the Farmers Deka group, recorded a 2 per cent drop in sales for the quarter.
Mr Humphreys said an alliance with mall owner Westfield to take up anchor tenancies in four Auckland and Wellington shopping centres would increase Farmers' shop-floor space by a quarter in the next four years.
Overall, Foodland's net profit for the quarter was up 10 per cent on last year.
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