Ralphs is losing its customer base in the UK as it struggles to gain traction in the food business.
Ralphs said it had lost about 50 per cent of its customer population since January and its net profit fell more than 25 per cent from the previous quarter.
It has lost a net profit of £13.6 million, its biggest ever.
Chief executive Robyn Doolittle said the business was still “in an interesting place”.
Mr Doolitt said the company was still working to attract and retain customers in the short term. “
The customer’s journey has to be about what they want and what they need and that is what we are trying to achieve in the supermarkets and in our grocery retail businesses.”
Mr Doolitt said the company was still working to attract and retain customers in the short term.
“It is important to understand that in the long term, the challenge for Ralphs will be how to find a way to grow its business and get customers to choose the brands they want to shop at,” she said.
The company has said that its current growth in the US is due to strong growth in China.
China, which accounts for more than a quarter of the UK’s grocery sales, is also looking to grow.
Earlier this year, a company in Australia, The Warehouse Group, said it was targeting a 15 per cent growth in its grocery business.