Co-op Group buys £30m c-store chain

THE Co-operative Group has enhanced its position as the UK&#039s leading convenience store business with the acquisition of the Balfour chain of 76 convenience stores and 35 newsagents....

THE Co-operative Group has enhanced its position as the UK&#039s leading convenience store business with the acquisition of the Balfour chain of 76 convenience stores and 35 newsagents.

The &#163 30 million deal brings the Group&#039s tally of stores to 1,829 and adds 126,000 sq ft of selling space in prime locations in the South, including London.

Balfour, owned by 3i and the chain&#039s senior management team, turned in a profit last year of &#163 1.4 million on a turnover of nearly &#163 67 million. The Co-operative Group plans to invest &#163 16 million in converting the stores to its successful Welcome convenience format.

Commenting on the acquisition, Co-operative Group Chief Executive Martin Beaumont said: `We needed to continue to build our presence in the South and add to the momentum building behind our convenience proposition.

`After integration and conversion to the Co-op Welcome brand, we will generate a significant uplift in sales and profits.`

Julian Davison, Director at 3i, said: `Balfour has developed into a highly successful southern-based chain of convenience stores during 3i&#039s period of ownership. The Co-operative Group has beaten off strong competition to acquire the business at a time when there is a great deal of activity in this sector.`

The Group is currently digesting the Alldays estate of 630 convenience stores, which it acquired last October for &#163 133 million. It is converting them at the rate of three a week and refitted stores are showing sales uplifts of around 30 per cent.

Since pursuing its convenience store strategy the Co-operative Group has gone from strength to strength.

Last year total food sales rose by 9 per cent to &#163 2.6 billion and food profits jumped 52 per cent to &#163 69.5 million. In the first half of this year its like for like sales in convenience stores are up 4 per cent, well ahead of the market.

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