Somerfield's blitz to catch up rivals

SUPERMARKET chain Somerfield is back on the offensive after stemming the decline in its market share. The retailer is spending more than £6m on an advertising blitz in an attempt to lure shoppers away from bigger rivals Tesco and Sainsbury.

Chief executive Alan Smith, who took the helm two years ago, reckons the group is making strides with its recovery. 'Many of our stores have been improved and so have the ranges,' he said. 'In the past, we only felt confident enough to advertise our products and prices. Now we aim to improve perceptions of our food, speed and service.'

Smith and chairman John von Spreckelsen are finding it a tough slog to turn the business around. The firm, which also owns Kwik Save, has been losing share to the larger supermarkets. But industry data suggests Somerfield has held its own for the past quarter. The shares, still far from their 481p peak, have soared 70% to 132p since December. Safeway, which has lost share in recent months, may raise money by developing its £3bn store portfolio.