Shares in Iceland, the British frozen food retailers which has a number of outlets in Ireland, fell by 6 per cent today as it showed a sales slump over Christmas.
The company's high-profile decision to focus on organic foods is being blamed.
Iceland said that in the 26 weeks to December 29, like-for-like sales at its stores, which excludes income from new openings, fell by 1.5 per cent.
Sales at cash and carry chain Booker, with which it has been merging since June, were static in comparison with last year.
Over the four-week Christmas period itself, again to December 29, like-for-likes at Iceland fell by 5.5 per cent, although Booker saw sales rise by 1 per cent.
Iceland blamed the decline on reduced in-store promotions and marketing activity and on its switch to organic products.
Sales of these products "had not matched the company's expectations", it said, adding that the organic range was being reviewed to ensure that the foods on offer were what shoppers wanted.
Booker's performance had been "satisfactory" although there had been higher growth in low-margin goods.
The chain, now led by former Wickes boss Mr Bill Grimsey, although founder Mr Malcolm Walker remains as executive chairman, was also undertaking a "thorough evaluation" of how the integration of Booker with Iceland was progressing.
The news sent shares in Iceland tumbling in early trading on the London Stock Exchange, falling 15p sterling at £2.43.
PA