The Co-operative Group expects to integrate Somerfield’s stores into its own portfolio within two years of its acquisition of the business.
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The GBP1.6bn (US$2.74bn) deal, which is expected to close next month, will take the Co-op’s market share to 8% of the UK grocery market, with annual sales of about GBP8bn.
Somerfield will be operated as a separate business for 24 months, a spokesperson for the retailer told just-food.
“During this time we will integrate the businesses and gradually replace the Somerfield fascia with the Co-operative,” the spokesperson revealed.
Within 18 months of completion, the Co-op said it will close Somerfield’s headquarters in Bristol and move all head office functions to the Co-op HQ in Manchester.
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By GlobalDataCurrently, 750 people are employed at the Somerfield head office.
The spokesperson did not give an indication of the number of jobs that will be lost, stating: “Somerfield has some great people and during the integration process we will endeavour to offer relocation opportunities to as many of them as possible.”
