Co-op has signed a new franchise agreement with EG On The Move, the subsidiary set up last year to operate the 32 UK petrol forecourt sites that the EG Group didn’t sell to Asda.
The agreement will initially see seven new Co-op franchise stores open this summer on EG On The Move forecourts, with the potential to expand the partnership in the future.
The first store is set to launch on Ogden Road, Doncaster, this week, with future sites planned for Billinghurst, Glasgow, Portlethen, Macmerry, Ipswich and Finmere.
The Co-op noted that the move forms part of its wider franchise growth plans, which includes a new target to reach over 500 franchise stores by 2030, with a third of those on petrol forecourts. Other areas where it is seeking franchise partners include universities, healthcare, and independent convenience retailers.
Jerome Saint-Marc, the Co-op’s Managing Director for B2B and Growth, said: “We are hugely excited to be working with EG On The Move on these new franchise sites and to be able to bring our Co-op franchise offer to more locations.
“This is part of our broader expansion in the petrol forecourt market. It follows our strategy to pivot our growth in this market through franchise, growing our presence and enabling us to best utilise our expertise and offer in convenience.
“As part of the Co-op’s overall growth plans, growing our franchise stores is a key priority for us, and we have ambitious and exciting plans to significantly increase our franchise footprint and become the partner of choice across a range of sectors.”
EG On The Move CEO Zuber Issa, who last month sold his stake in Asda to TDR Capital, added: “We are delighted to have the opportunity to collaborate with Co-op to roll out their new convenience store formats. Following on from this seven store trial, we look forward to working with Co-op to consider other locations across the network.
“Co-op is a well-established convenience operator, respected in the market and a recognised consumer brand, and this partnership not only promises to enhance our convenience store offer, but it will also ensure our customers have access to exceptional fuel retail services including EV charging, a wide choice of essential and premium grocery and merchandise along with an enjoyable foodservice experience.”
NAM Implications:
- This low cost/risk initiative is scalable…
- …for an iconic Co-op convenience offering.
- Especially with EG On The Move incentivised to demonstrate their motoring convenience appeal.
