The Co-op wants to muscle in on the UK supermarket sector’s top four, and turn it into a top five with the £1.57 billion acquisition of Somerfield.
The Co-operative Group’s chief executive Peter Marks is gradually revealing his desire to shake up the country’s supermarket hierarchy.
Marks hopes to boost recognition and belief in the Co-op brand nationwide, as the Somerfield name is phased out, and deliver greater choice for UK customers.
The acquisition immediately makes the Co-op the country’s fifth largest supermarket chain, doubling its market share to more than eight per cent. Marks said “This is great for our business and in my view propels us back to the Premiership of food retailing. People talk about the big four. I hope people will soon talk about the big five.”
Approximately 120 of Somerfield’s 880 stores are expected to be sold off due to competitive measures in certain areas. The Co-op is also expected to lay off as many as 800 Somerfield staff based at head office in Bristol.
Marks has not commented on the rumours, but said the acquisition will provide the “rocket fuel” for a programme of transformation for the Co-op.
