The Co-operative has announced the sale of 298 of its smaller food stores to McColl’s Retail Group plc for £117 million. The sale of the stores, which have an average size of 1,700 square feet, is subject to approval from the CMA and McColl’s shareholders.
The Co-op says that the sale of the stores will help boost the Co-op's food strategy, with the retailer having seen like-for-like sales growth in its convenience estate of 4% in the year to April.
“The Co-op Food business continues to move forward with a clear momentum and purpose to deliver a compelling and convenient shopping experience for our millions of customers and members," said Steve Murrells, CEO of Co-op Food, who added that this "announcement is completely in line with our strategy, as these stores did not allow us to provide a sufficiently compelling own-brand offer for our members going forwards.
"The proceeds will be re-invested to drive sustainable growth for our members and I’m delighted that all 3,808 colleagues will transfer to McColl’s on the same terms and conditions.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
