UK: Somerfield shelves sell-off plans
The supermarket chain Somerfield has shelved plans to sell its struggling Kwik Save division. The company acquired 900 Kwik Save stores in 1998, and decided to put 350 of them up for sale last year. But none of the offers it received was thought to be satisfactory and Somerfield has now changed its mind. The stores are estimated to be worth £215m, but it is believed offers were in the region of £75m - £90m. Somerfield is also withdrawing from sale 41 of its own brand shops. It decided earlier this year to sell up to 140 of its bigger stores in an attempt to refocus the business as a neighbourhood retailer. But 57 of those were taken off the market because no suitable offers had been received. Now the remaining stores will stay in the Somerfield portfolio. The changes in policy are the first moves made by the new chief executive, Alan Smith. He took over Somerfield, Britain's fifth largest supermarket chain, after David Simons was ousted last month. The purchase of the Kwik Save stores has caused problems for Somerfield.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- The key questions for digital strategists in 2017
- How Tyson's new CEO plans to grow the meat group
- Mondelez goes beyond certified cocoa - analysis
- Nestle unveils process to cut sugar by 40%
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti
- Amnesty - Global brands profit from labour abuses