Somerfield intends to step up its Kwik Save regeneration programme and plans to upgrade the entire 630-store estate by 2007.
The grocer has refitted 10 per cent of the Kwik Save estate and wants to up the pace.
Last month, Somerfield announced that Kwik Save would exit Scotland, converting 29 stores to its eponymous chain and shutting 22.
Somerfield finance director Steve Back, who is to become chief executive, said a further 20 Kwik Save stores in the South will be converted to Somerfield. Kwik Save will be focused in Wales, the Midlands and the North of England.
The retailer posted preliminary group profit before tax and exceptionals of£41.1 million, compared with£25.8 million for the same period last year.