The Lothian Borders & Angus Co-operative Society has expanded its store network by a fifth with the acquisition of nine Somerfield stores.
The group will add the outlets in the north of Scotland to its existing 45 stores between Galloway and Forfar.
All 190 staff in the stores will transfer to the Galashiels-based co-op after the purchase for an undisclosed fee. Gordon Wilks, the LBAC society's development and property controller, said: "This purchase is a logical move for us since the stores are adjacent to our current trading area.
"They are all excellent, well-presented stores and we are looking forward to investing in them in the short and medium terms."
Somerfield said it has taken the opportunity to take advantage of an approach “which represents good value”.