UK-based grocer Morrisons has announced this week that it has entered into a conditional agreement with rival retailer Asda to purchase 16 former Netto UK stores, adding an additional 11,000m2 of selling space at a cost of £28.1m (€33.8m).
According to Morrisons, the store network fits in 'very well' with its existing portfolio, with the additional space acquired incremental to the 46,500m2 target already outlined for the 2011/12 period.
Obtaining the Netto stores is conditional upon the completion of Asda's acquisition of Netto UK, with final approval required by the Office of Fair Trading, the group said, while the handover is expected to take place in March.
'These additional stores are an important next step in Morrisons' growth,' said Dalton Philips, chief executive at Morrisons. 'We are building on our strategy to bring Morrisons' unique offer of freshly prepared, affordable food to more people in Britain.'
In a separate development, Morrisons has also revealed that it has signed five-year renewal of an existing contract with reusable plastic container group Chep, to issue RPCs into its food supply chain.
Under the terms of the agreement, some 65m issues of RPCs per year will be made by Chep UK & Ireland to a variety of customers in the fresh produce, meat, poultry and ready-meal sectors, which transport their products to Morrisons using RPCs.
'Chep are no longer just our equipment providers. We have a genuine partnership built on value and trust that is committed to continuous improvement throughout our supply chain,' said Neal Austin, Morrisons' logistics director. 'We've seen a step change and recognise that Chep UK & Ireland people go the extra mile to meet demand for our own network and for our suppliers.'
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