Crawshaw a cut above thanks to the £5 meat pack

Last October, the Rotherham-based company reported difficult trading conditions on the high street as rising meat prices coupled with reduced pay packets hit sales.

In a bid to turn around its fortunes the company appointed a new marketing manager, Suzie Edwards, who launched a range of £5 packs of meat such as chicken breasts and chicken fillets weighing almost a kilo.

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

Crawshaw’s finance director Lynda Sherratt said: “These packs proved very competitive against the supermarkets.”

Like-for-like sales for the five weeks to January 1 rose by three per cent at the group’s 12 more established shops and by seven per cent at its eight newer shops.

Total sales over the five-week period rose nine per cent.

Ms Sherratt said customers at the group’s more established legacy shops are very loyal, but tend to buy at the same level that they always have.

The newer stores are attracting new customers, some of whom are willing to spend more.

Crawshaw said full year trading profits and cash generation will be in line with management expectations.

Analyst Derren Nathan, at WH Ireland, said: “Crawshaw’s Christmas trading statement demonstrates a positive turnaround for the company following a disappointing set of interim results in October and a slow start to the second half of 2012.

“We upgrade our stance to ‘outperform’ and introduce a 2.5p target price.”

The shares closed up 36 per cent last night, a rise of 0.76p to 2.88p.

Crawshaw, one of the most resilient retailers during the downturn, succumbed to the tough climate last October with a 10 per cent plunge in like-for-like sales over an eight-week period.

Plans to expand into side dishes were put on hold over Christmas, but the new dishes are going into stores now after they proved very popular at a trial in two stores.

The range will include oven ready dishes such as roast potatoes, dauphinoise potatoes and ham and cheese jacket potato skins.

Crawshaw will also offer freshly prepared vegetable dishes such as carrot and parsnip and cauliflower gratin.

A desserts range including cheesecake, caramel apple cake and lemon drizzle cake, has been put on hold as customers were not as enthusiastic.

“Desserts were not such a hit, but we will look at them again,” said Ms Sherratt.

Mr Nathan said: “The broader product range, namely the introduction of side dishes and desserts, was restricted over Christmas due to shelf space.

“However when trialled in stores earlier in the year the offer was well received enabling the company to take maximum advantage of customer loyalty – increasing customer spend and driving sales.

“The best selling products from the range will be rolled out across stores in the next few months.”