RETAILER Kingfisher said it was "well advanced" in talks to part with its Woolworths and Superdrug chains, as it reported a five per cent rise in sales for the first quarter.

The group, which also owns Comet and B&Q, is breaking itself into two, splitting general merchandise - including Woolworths and Superdrug - from its core DIY and electrical shops.

Chief executive Sir Geoffrey Mulcahy said: "As previously announced, the separation of Kingfisher's general merchandise business is well under way and is on schedule to be delivered by the end of July.

"Work on the demerger option has progressed well. At the same time we are well advanced with negotiations with the prospective buyers of both the main businesses."

He said the group's final decision would be based on which route ensured best value for shareholders.

Kingfisher first announced the plans to split in September.

It is believed that Kruidvat, the private Dutch pharmacy chain, could buy Superdrug for about £270m.

Private equity groups Charterhouse Development Capital and Schroder Ventures have been linked with Woolworths.

Sir Geoffrey is following a "twin-track" approach of seeking buyers for the chains, but retaining an option of demerging them.

Along with the strategy update, Kingfisher said like-for-like sales grew by 4.9 per cent for the 13 weeks to May 5, as shoppers snapped up DIY and electrical goods.

The first quarter figures showed sales at its electrical and furniture chains were boosted by popularity of items such as DVDs, mobile phones and wide-screen TVs, rising 1.6 per cent on a like-for-like basis.

Like-for-like sales of general merchandise rose 3.6 per cent.