Summary
Following a period of sustained market change and operating cost increases across the retail sector, Southern Co-op has taken the decision to sell 22 of its directly operated food convenience stores.
20 stores are being sold to two third-party retailers, and two will be converted to operate under Southern Co-op’s Welcome franchise.
Simon Eastwood, Southern Co-op’s Chief Operating Officer for Retail, said, “As a food business, we continue to evolve and develop our offering to meet the changing needs of our customers and members.
"The sale of these stores reflects our ongoing efforts to optimise our store portfolio and strengthen our long-term operating model and in no way reflects the hard work of colleagues.”
Existing colleagues at the affected stores will transfer to their new employer under TUPE regulations and Southern Co-op will work closely with the acquiring parties to ensure a smooth transition, providing full support to colleagues throughout this process.
The Society remains committed to ongoing investment across its estate, with plans to open two new food stores later this year, building on the purchase of six new managed stores and opening 25 Welcome franchise stores over the last two years.
Meanwhile, Chelmsford Star Co-operative Society has announced plans to merge with Central Co-op through a proposed transfer of engagements. If approved by members, the move would create a society with a turnover exceeding £1 billion.
The proposed transfer requires approval by Chelmsford Star members at two special general meetings which will take place in late July and early August.
Chelmsford Star operates 34 food stores, two travel agents and 9 funeral homes across mid-Essex. It decided to close its two department stores in May.
Central Co-op is one of the UK's largest co-operatives and trades across 22 counties and operates in food, funerals and property investment.
