Sussex's small shop owners are in line for a change of image following Budgens' announcement it is to take on Londis and Spar with a new convenience store brand.

Budgens Local will act as the supplier for groups of small independent stores which will trade under the Budgens Local name.

The new format will be tested in up to 50 stores over the next two years. A spokesman for Budgens said: "The stores will be within our existing area of operations, which includes Brighton."

Retailers taking part in the scheme will be able to offer the complete range of Budgens own-label products as well as an improved fresh food offering.

The concept is currently being tested with one independent retailer and will be rolled out from there.

Budgens, which lost its chief executive John von Spreckelsen to Somerfield in April, has been squeezed by the larger supermarket chains and has had to find a point of difference, particularly by concentrating on fresh food, convenience food and ready meals.

Budgens' announcement came as it reported a leap in profits due largely to fresh food sales. It said pre-tax profits in the year to April 30 were £14.6 million, up from £12.6 million in the previous financial year.

Like-for-like sales, the key measure of how a supermarket group is performing, were running up 4.1 per cent compared with an industry average of about 1.7 per cent.

Group turnover, adjusted for the 53-week year, was up 4.5 per cent to £451 million, compared with £440 million last time.

Budgens deputy executive chairman Christian Williams said market conditions in the supermarket sector were "very, very tough", with retailers forced to cope with deflation in food prices but inflationary pressures elsewhere.