Safeway, the UK's fourth largest supermarket group, has said sales have strengthened in recent weeks, helped by a continuing programme of store refits.

The group said underlying sales growth had risen by 3% in the three months to 22 June, but that sales in the final six weeks of this period had risen by 4%.

But the 3% growth figure is only half the level of a year ago, with price cuts holding back growth.

"The whole sector has slowed down since April and we're experiencing deflation again," said Safeway's director of communications, Kevin Hawkins.

Approximately 100 stores are due to be refurbished in the current year, compared to 71 last year.

Safeway said that the improved sales at stores that had been overhauled was now offsetting the loss of sales at stores being refurbished.