Grocery retailer SuperValu posted an 8.9% net sales decline to $40.6bn (£26bn) in the year ended February 27.

Same-store sales declined 5.1%. However, net income rocketed to $393m (£252m) compared with a $2.9 bn (£1.6bn) loss last year.

SuperValu chief executive and president Craig Herkert said the retailer expects net sales to drop to $39bn (£26bn) in its 2011 financial year.

As part of its ongoing SKU rationalisation programme, SuperValu has exited 26 general merchandise categories. The grocer will no longer carry products that are not considered core to its shopper base such as fragrances, automotive accessories and everyday electronics.