Kavanagh Group’s Budgens stores have posted a 2% drop in sales - after a Tesco price match campaign drove down basket values.
Its UK division reported sales of £22.2m across its four stores in West Sussex and Hampshire in the year to 31 December 2011. Pre-tax profits increased from £257,938 to £264,919 during the period.
MD Noel Kavanagh Jr said the fall in sales was also down to increased competition and the economic downturn.
Budgens launched its Tesco price match a year ago, along with a series of fresh food and own label initiatives. These measures had helped to return all stores to like-for-like growth this year, said Kavanagh.