COSTCUTTER Supermarkets Group has posted increased sales by four per cent to £640 million in its 25th year.

The Dunnington-based business said its sales figures for the year to April 2011, showed another solid performance despite difficult trading conditions.

The convenience store sector as a whole reported sales increases of 4.9 per cent, according to food and grocery analysts IGD, which Nick Ivel, managing director, said put its performance at the top end of the industry average.

He said independent retailers, such as the owners of Costcutter’s 1,550 branded stores, were “defiant” as more supermarkets migrated into the convenience store sector and the business had invested in increased marketing activity and introduced a loyalty scheme.

He said: “As we celebrate our 25th year, retailer recruitment is already up and we’ve made significant appointments and restructured internally to ensure we have the right team in place to deliver on our promises to retailers.”