Spar is to extend its supermarket format Eurospar into mainland UK with the acquisition of 11 stores from fellow retailer Somerfield.
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The deal, which was struck for an undisclosed sum, will see an unspecified number of the former Somerfield stores become Eurospar outlets, which are bigger than the standard Spar convenience store.
There are 13 Eurospar outlets – which range from 5,000 to 10,000 sq ft – in Northern Ireland but a spokesperson for Spar UK said the acquisition would see the format roll out across the Irish Sea.
“These are supermarkets but with a convenience feel, “ the spokesperson told just-food today (21 January).
The acquisition of the Somerfield stores was struck by three of Spar’s six regional distribution companies in the UK – AF Blakemore & Son, Capper & Co and James Hall & Co. Each Spar store in the UK belongs to one of these six companies depending on the outlet’s location.
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By GlobalDataSpar UK managing director Jerry Marwood said the investment in the Eurospar banner was a sign of the company’s commitment to the market.
“The purchase of the Somerfield stores is a big opportunity for us,” Marwood said. “As a collection of well-funded, private businesses Spar is ideally placed to take advantage of the changes happening in our market place.”
Spar is also looking to buy individual stores from the collapsed Woolworths chain. The Spar spokesperson refused to be drawn on how many outlets Spar was looking to buy but said negotiations were ongoing.
The Co-operative Group struck a deal worth GBP1.6bn (US$2.2bn) to buy Somerfield last July. Last week, the UK’s Office of Fair Trading cleared the deal after approving the Co-op’s plans to sell 133 stores to address competition concerns.
Retailers including Morrisons, Tesco, Lidl and the Musgrave Group have also bought Co-operative Food and Somerfield stores that were up for sale in the wake of the deal.
