Southern Co-op has announced that it is selling 22 of its 200 directly operated food convenience stores following a period of “sustained market change and operating cost increases”.
20 stores are being sold to two third-party retailers, and two will be converted to operate under Southern Co-op’s Welcome franchise.
“As a food business, we continue to evolve and develop our offering to meet the changing needs of our customers and members,” said Simon Eastwood, Southern Co-op’s Chief Operating Officer for Retail.
“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.”
The Society noted that it 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.
NAM Implications:
- Selling off low/no-profitability stores will help in optimising available funds for investment.
- Understandable in the current uncertain climate.
- (An opportunity for suppliers to emphasise financial impact in presentations to Southern Co-op?)
