Co-op chief exec reveals a shake up to give shoppers more choice
July 22, 2008
The Co-operative Group’s chief executive Peter Marks has revealed plans to shake up of Britain’s supermarket sector. The retailer agreed to a £1.57 billion takeover of Somerfield.
Peter Marks hopes the move will help lead a makeover of the Co-op brand nationwide and encourage greater choice for customers.
The Co-op is now Britain’s fifth biggest supermarket chain. The takeover of Somerfield has doubled the Co-ops market share to 8%.
Mr 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.”
About 120 of Somerfield’s 880 stores could be sold because competition may be too strong in those areas.
The Co-op is also expected to lay off 800 of Somerfield staff based at their head office in Bristol.
Mr Marks wouldn’t comment on either speculation but insisted that the point of the takeover was to build a new force in the grocery sector rather than cutting costs.
He said the acquisition would provide the “rocket fuel” for a programme of transformation for the Co-op, this has included the refurbishment of hundreds of its stores and travel agents.
The Co-op brand is planned to replace the Somerfield name.
For more information on the Co-operative Group visit www.co-operative.coop .
Comments
Got something to say?
Advertisement