Safeway delivered a sharp improvement in sales figures yesterday after reaping the rewards of a stores overhaul.

Like-for-like sales picked up four per cent in the six weeks to June 22, helped by the success of four new "megastores" and 29 refurbished outlets.

The renovated ones included stores in Redcar, Scarborough, Harrogate, Yarm and two in the Newcastle area.

The figure is an improvement on the two per cent sales growth reported in May when Safeway said business had been hit by the upheaval caused by the work.

Overall, like-for-like sales increased by three per cent in the first 12 weeks of the financial year, including price cuts worth 0.7 per cent.

The group has introduced new features, ranging from fresh food counters and noodle bars to dry cleaning and photo processing shops.

It has already announced plans to speed up the refurbishment programme to cover 100 stores by the end of the financial year.

Chairman David Webster said the stronger sales performance had been achieved in the face of increased competition and a slowing retail market.

He added: "We are confident about the ability of our formats to drive our future growth."

Safeway's regeneration programme has included the opening of new megastores at Anniesland, Glasgow, Gamston near Nottingham, Milton Keynes and Rushden.