Question mark over food shops

1:47pm Thursday 24th July 2008

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A CO-OP food store has undergone a £250,000 revamp – but a question mark is hanging over other food stores in the region following a major grocery deal.

A spokesman for The Co-operative Group said the store in Haxby, York, had been re-opened by local schoolchildren after being given a modern décor, a more shopper-friendly layout and environmentally-friendly refrigeration.

But he was unable to clear up questions hanging over the future of other Co-op stores in York – and also Somerfield outlets – following an announcement that the group had agreed to buy Somerfield for £1.56 billion.

Somerfield currently operates approximately 880 local grocery retail outlets across the UK, including branches in Pocklington, Selby, Hull Road in York and one just down the road from the Co-op store in Haxby.

If the deal is approved by the Office of Fair Trading(OFT), the combined food business will operate more than 3,000 grocery stores and generate net sales of about £8 billion, making it a market leader in convenience food retailing and the fifth largest food retailer in the UK with a market share of approximately eight per cent.

“We expect to file with the OFT this month and hear back in late September,” said the Co-operative spokesman.

“Therefore, we cannot comment on individual locations until then.”

The Co-operative Group is the UK’s largest mutual retailer.

Chief executive Peter Marks said the acquisition of Somerfield would provide the “rocket fuel” for a three-year growth plan outlined earlier this year.

“Under this plan, we are revitalising our retail estate under a single unified brand – modernising our stores, improving our product offer and service levels for customers and members and reinforcing our Co-operative difference.”

Paul Mason, chief executive of Somerfield, said The Co-operative Group and Somerfield had a similar focus in terms of customers, store types, product ranges and business vision.

“Our shared vision of providing a high quality and affordable convenience offer to local communities means that together we will be twice as strong and therefore twice as able to deliver the local grocery shops British customers demand.”

At Haxby, pupils from Ralph Butterfield Primary School helped store manager Karen Braithwaite officially open the revamped store.

A new Co-operative Funeral Home, based next to the store, was opened by Reverend Canon Glyn Webster, Chancellor of York Minster.