The Co-op is selling 298 of its smaller food stores to convenience retailer McColls Retail Group as part of its wider strategy to focus on own-brand.
Worth £117 million, the deal is expected to be completed in November of this year and will see all stores continue to trade as normal, the Co-op said. All associated staff will transfer to McColl’s.
Steve Murrells, chief executive of Co-op Food, said: “Today’s announcement is completely in line with our strategy, as these stores did not allow us to provide a sufficiently compelling own-brand offer for our members going forwards.”
The sale proceeds will be re-invested in the business, which over the past two years has opened 200 new stores and is actively pursuing 100 new acquisitions.
Murrells added: “The proceeds will be re-invested to drive sustainable growth for our members and I’m delighted that all 3,808 colleagues will transfer to McColl’s on the same terms and conditions.”
McColls Retail Group is a convenience store and newsagent operator, trading under the trading names McColls, Martins and RS McColl for stores in Scotland.
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