Butcher a cut above expectations

Crawshaw’s chairman Richard Rose told shareholders at yesterday’s annual general meeting that like-for-like sales “have significantly improved” since last autumn.

Year-to-date like-for-like sales at the Rotherham-based company are now running at four per cent higher than last year.

The new £5 packs of meat, including chicken breasts and chicken fillets weighing almost a kilo, are drawing in cash-strapped shoppers.

Mr Rose said sales in May were particularly encouraging, with like-for-like sales at its legacy stores six per cent higher than the same time last year. Like-for-like sales at its newer stores were 12 per cent higher.

Chicken sales have held up better than lamb and prime beef products, which are considerably more expensive.

Overall like-for-like sales in June are running four per cent higher than last year, despite the recent lack of barbecue sales opportunities due to the dismal weather.

Mr Rose said margins are “slightly above” last year, with the recent margin performance particularly encouraging.

“We are delighted to report that, for the first 20 weeks of the current year, we are trading ahead of management’s expectations,” said Mr Rose.

Following the Budget in March the group has expressed concerns over the Government’s proposals to add VAT to certain cooked products.

Yesterday Mr Rose told shareholders the recently announced concessions have helped as the group will be allowed to sell “on the cool” products without VAT.

But it will create some difficulties, particularly in its small format stores.

“We have made further representations to the Treasury, both in writing and in person, and are hopeful that workable solutions can be found,” said Mr Rose.

In May, Crawshaw called on the Government to shelve the planned tax on hot food.

“We see it as a tax on the hard-pressed family’s evening meal,” said Mr Rose.

“I find it very unfair that small format high street food retailers and hard-pressed families and pensioners are being targeted in this way.”

The Government announced plans – dubbed the pasty tax – for a 20 per cent sales tax on fresh foods that are sold warm or hot.

Since then the Government has said that only products that are kept warm are subject to VAT so any products that are cooling down won’t be taxed.

The move has raised health and safety concerns.

The tax could force Crawshaw to hike the price of products such as cooked chickens, roast beef joints and hot pork knuckles.

These products make up 38 per cent of its sales.

Mr Rose said most of customers take home the hot meat for their evening meal, saving on cooking costs.

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