Competition concerns over only one of eight stores in Co-op’s takeover of My Local

AN investigation into Co-op’s acquisition of several My Local stores has found that only one of the sites acquired could give rise to competition concerns.

Co-op’s acquisition of the Widnes store in Cheshire was the only one of the eight stores acquired by the business in July and September 2016 to risk competition overlap, said the Competition and Markets Authority.

The CMA said that whilst the retailer already owns sites in all eight store areas, it has three convenience stores in close proximity to each other at the Widnes site.

It said that the two brands competed closely prior to My Local’s administration, and that only one other convenience store in Widnes is likely to compete effectively with Co-op following the sale.

Co-op has until October 26 to remedy the CMA’s concerns or risks facing an in-depth investigation.

KPMG were appointed as administrators to My Local, the former convenience vehicle of Bradford-based Morrisons at the end of June 2016.

By 30 June, 90 stores had already closed down following the shutdown of the business. Administrators said it had faced “significant challenges” in the convenience sector since it was sold by Morrisons to Greybull Capital and Mike Greene in September 2015.

Several hundred of a total of 1,200 jobs at My Local were saved following the sale of dozens of stores to competing retailers.

Sheldon Mills, CMA senior director mergers and decision maker in this case, said: “In most of the areas where Co-op acquired My Local stores, there was sufficient rivalry from other grocery retailers.

“However, in Widnes before the merger, Co-op had a strong presence with three convenience stores in the local area. Therefore, we believe that the merger may lead to competition concerns.”