Co-op expands franchise stores network in deal with EG On The Move

The Co-op has signed a new franchise agreement with petrol forecourt business EG On The Move as it targets significant franchise growth ambitions.

The agreement will initially see seven new Co-op franchise stores open this summer.

Blackburn-based EG On The Move is controlled by Zuber Issa, who, bought out his brother, and co-founder, Mohsin, in a £228m deal on June 7.

It was part of a wider deal involving Zuber selling his 22.5% stake in the Asda supermarket group to private equity firm, TDR Capital, which had acquired Asda, alongside the Issa brothers, for £6.8bn in 2021.

As part of the deal with the petrol forecourts group, the first Co-op store is set to launch in Ogden Road, Doncaster, this week.

Manchester-based Co-op said it has ambitions to scale its franchise business to reach more than 500 by 2030.

Core areas of growth are focused on where it can best utilise its convenience expertise with quality franchise partners, including petrol forecourts, universities and healthcare and, independent convenience retailers.

The move aligns with growth ambitions across Co-op’s core businesses – Food Retail, B2B and Life Services – with the convenience retailer aiming to broaden its reach and scale, and grow to eight million member-owners by 2030.

Jerome Saint-Marc, Managing Director 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.”

He added: “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.

“We’ve got an excellent market proposition. And whilst it’s highly competitive, we believe there’s huge potential to unlock growth with our trusted brand, and unique offer and expertise.”

Zuber Issa, CEO, EG On The Move, said: “EG On The Move is an acknowledged petrol forecourt and convenience retail destination operator, and 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.”

EG On The Move is the Co-op’s second forecourt partner, and Martin Rogers, Director of Partnership Development, Co-op, said: “We look forward to further growing our franchise business, working with partners of pedigree to bring Co-op products and membership to more communities, creating more value for our member-owners.”

The seven locations are confirmed as: Doncaster, Ogden Road; Billinghurst, Sussex; Nitshill, Glasgow, Lanarkshire; Portlethen, Aberdeenshire; Macmerry, Tranent, East Lothian; Wherstead, Ipswich, Suffolk; Finmere, Tingewick, Buckinghamshire.

Co-op currently operates almost 2,400 food stores and provides products to more than 6,000 other stores including those run by independent co-operative societies and through its wholesale business, Nisa Retail.