Three Shropshire Co-op stores to be sold in big clearout
The Co-operative group plans to sell off nearly 300 shops – including three in Shropshire – to a rival firm as it looks to overhaul its retail footprint across the UK.
The firm said the £117 million deal will see 298 smaller food stores snapped up by McColl's Retail Group, with money from the sale used to buy 100 stores this year and 100 more in 2017. Stores in Whitchurch, Oswestry and Pant are among those included in the sale.
The move, which is subject to approval from regulators and McColl's shareholders, will also see 3,808 Co-op staff transferred to McColl's as part of a TUPE agreement.
Steve Murrells, chief executive of Co-op Food, said: "The 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 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."
The Co-op said it was selling the stores, which are 1,700 sq ft on average, because they are too small to stock all of its own-brand products which have been key to driving up sales. It said the move tied in with plans to grow the total number of Co-op members to a million by 2018, while pushing up the total sales from members to 50 per cent.
