RNS Number:0943Z
Big Food Group PLC
25 July 2002


                                                                    25 July 2002

                            THE BIG FOOD GROUP PLC

                                Trading Update


Introduction

Following a comprehensive first quarter forecast for the Big Food Group, it has
been established that Iceland Foods will produce a shortfall in profit at the
half year.  Although there has been a decline in market conditions, the trading
performance at Iceland Foods has continued to disappoint.  Booker is making
satisfactory progress.

Sales and Profit

The last update on 10 July 2002 covered the thirteen week period to 28 June
2002.  In the subsequent three weeks, like for like sales have been:

           Group                  -  1.0%
           Booker
           -   Tobacco            -  1.9%
           -   non tobacco           3.3%
           Woodward                 12.4%
           Iceland Foods         -   8.3%

Sales at Iceland Foods have continued to decline, particularly as a result of a
too aggressive move towards a value driven proposition.  Whilst the direction of
the change is consistent with the Group's strategy, the pace and extent of this
repositioning has clearly been greater than our customers would have liked.
This move required an investment in margin to generate sales and the targets for
both of these elements have not been met.  Whilst the long term strategy of
moving to a consistent value proposition remains appropriate, the Group has
reacted to these trading issues at Iceland Foods by restoring promotional
activity whilst we progressively implement our strategic plan.

It is expected that all of the impacts on sales and profit will be realised
during the first half with Iceland's operating profit of £8 million for the
twenty four weeks to 13 September 2001 becoming an operating loss of a similar
amount for the corresponding period in 2002/03.

The performance of the new concept stores continues to be encouraging for the
long term strategic outlook.

Booker's sales performance continues to be positive and its underlying
profitability is in line with expectations as are all other parts of the Group.



Net Debt

The average net debt for the period 18 June to 19 July 2002 was £232 million.
This remains a positive indicator of the Group's performance so far and will
increase as the investment plans are fully implemented.



Enquiries:

The Big Food Group
Bill Grimsey - Chief Executive                     020 7796 4133 on 25 July 2002
Bill Hoskins - Finance Director

Hudson Sandler
Andrew Hayes                                       020 7796 4133
Michael Sandler
Noemie de Andia




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