UK: Co-operative to acquire ten Costcutter stores

By Michelle Russell | 19 November 2012

  • Co-operative acquires ten Costcutter stores
  • Located in London
The Co-op plans for the outlets to start trading as Co-operative food stores before Christmas

The Co-op plans for the outlets to start trading as Co-operative food stores before Christmas

UK retailer The Co-operative Group is to buy ten Costcutter stores in London for an undisclosed sum.

The Co-op plans for the outlets to start trading as Co-operative food stores before Christmas, the retailer said today (19 November). Staff employed at the outlets will be offered the opportunity to transfer to The Co-op.

The retailer said the move forms part of its plan to acquiring stores either leasehold or freehold, between 2,000 sq ft and 4,000 sq ft in high street and local community locations. The group said it is particularly focused on expanding in London.

The retailer bought six of the stores from the Sunstar Group and the remaining four from Tothaal Group.

Show the press release

THE CO-OPERATIVE GROUP TO ACQUIRE TEN COSTCUTTER STORES

The Co-operative Group has announced it is to buy 10 stores in London, all currently branded as Costcutter, for an undisclosed sum.

The 10 stores, which are located in Southwark, Tower Hamlets, Hackney and Brentford, will transfer to The Co-operative Group, with plans to start trading as Co-operative food stores before Christmas.

Staff currently employed at the outlets, which include two Post Offices, will be offered the opportunity to transfer to The Co-operative. All the stores, employing around 180 in total, will also undergo a full refit in 2013, following an investment of £3m.

Six of the stores are currently owned by the Sunstar Group Ltd and the other four by Tothaal Group Ltd.

The Co-operative, which is the UK's fifth largest food retailer, is actively acquiring stores, either leasehold or freehold, between 2,000sq ft and 4,000sq ft in high street and local community locations, and is particularly focussed on expanding in London.

Steve Murrells, The Co-operative's Chief Executive Food Retail, said: "This acquisition marks another important step in our plans to expand and follows our acquisition of the David Sands chain in Scotland earlier this year and the opening of a large number of new stores across the country.

"These stores are in excellent locations across central and Greater London and they will complement our existing store network in the capital and will be valuable additions to our portfolio."

Original source: The Co-operative Group

Sectors: Mergers & acquisitions, Retail

Companies: Costcutter, The Co-operative Group

View next/previous articles

Currently reading -

UK: Co-operative to acquire ten Costcutter stores

There are currently no comments on this article

Be the first to comment on this article

Related research

Fonterra Co-Operative Group in Packaged Food (World)

Fonterra is ranked in the top 20 among dairy players. However, this is due for the most part to its strong presence in Australasia. The company is looking to diversify, investing in a China-based dairy operation, and is considering a move into India....

Related articles

Interview: UK firm Belton Cheese looks to drive international growth

Belton Cheese has been on something of a roll, expanding its business into new international markets with fresh distribution deals in countries as far afield as the US and Japan. The group announced yesterday (30 April) that it is further growing its overseas presence through an agreement to expand into Russia's high growth dairy market. Katy Askew caught up with Belton sales manager Phil Jones to find out more.

Consuming issues - GM debate comes down to question of trust

The GM debate has re-emerged in the UK in the last couple of weeks with the news four major supermarket operators will allow their suppliers to use GM feed for poultry and eggs.

The just-food interview - Associated British Foods CEO George Weston

Discount clothing chain Primark again grabbed the headlines for Associated British Foods as it booked higher half-year profits and sales - and saw its shares hit a record high. But what about ABF's grocery business? Dean Best spoke with CEO George Weston about the performance of and prospects for the UK group's food operations.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page