Co-operative goes shopping in London

THE Co-operative Group’s retail business has strengthened its position in London with the acquisition of 10 Costcutter-branded stores in the capital.

Financial terms of the deals, from two vendors, Sunstar Group (six stores) and the other four by Tothaal Group (four shops), were not disclosed by the Manchester-based mutual said it would spend £3m on refitting them.

The 10 stores, located in Southwark, Tower Hamlets, Hackney and Brentford, will start trading as Co-operative food stores before Christmas.

All 180 staff currently employed at the outlets, which include two Post Offices, will be offered the opportunity to transfer to The Co-operative.

The Co-operative, which is the UK’s fifth largest food retailer, is particularly focused on expanding in London.

Steve Murrells, chief executive of Co-operative Food Retail arm, said: “This acquisition marks another important step in our plans to expand and follows our acquisition of the David Sands chain in Scotland earlier this year and the opening of a large number of new stores across the country.

“These stores are in excellent locations across central and Greater London and they will complement our existing store network in the capital and will be valuable additions to our portfolio.”