Co-op buys in Scotland and reports festive sales growth
THE Co-operative Group has bought a chain of nearly 30 Scottish supermarkets and reported “encouragingly good” festive sales figures.
The acquisition of David Sands Ltd, which is headquartered in Kinross, Perthshire, will add 700 staff to the Co-op, should it receive regulatory approval. In 2010 David Sands it made a profit of £1.7m on turnover of £40.1m.
Co-operative chief executive Peter Marks said: “This major acquisition is another important step in our plans to expand The Co-operative Food estate.
“The Sands stores will be a valuable addition to our food portfolio as we forge ahead with our programme to grow the business by seeking new opportunities at the heart of local communities right across the UK.
“Furthermore, this deal will significantly strengthen our position in Scotland, especially in Fife, Kinross and Perthshire, and complement our existing store estate, which operates from the Highlands and Islands to the Borders.”
The group said it had traded well in the four weeks to December 31 with total gross sales for the trading businesses were up 3.1% on 2010, with food and online electrical sales leading the way.
Sales in like-for-like food stores were also up by 3.1% in the period, and 16.1% in the week before Christmas itself.
Mirroring the tough economic environment the group said like-for-like sales in the 13 weeks to December 31 were down 0.2% on 2010.
The Co-operative Electrical, the group’s Stockport-based online electrical business, had its best Christmas ever with sales during the same four weeks up by 18.4% with strong sales of flat-screen TVs, laptops and iPods.
Commenting on trading Peter Marks said: “These results represent an encouragingly good performance in the very competitive markets in which we operate and in continuing difficult economic times.
“Against the backdrop of financial pressures on household budgets our focus on quality and value and the fact that our food stores are located within communities struck a chord with customers.
“The food sales growth in December comes on the back of an improving LFL trend throughout the second half of the year.”
