Central Co-op has announced plans to dispose of 19 food stores and six funeral homes, on the grounds that they are “financial unsustainable”.
Three of the grocery stores will be leased to B&M Retail, while the other 16 stores will be sold to independent convenience chain Samy Limited, which runs 32 Budgens, Spar, Londis and Premier stores across the UK.
“It’s always difficult to sell any store but what we’re constantly doing is looking at the financial viability, and these stores had been struggling for some time,” CEO Debbie Robinson told The Grocer. “We didn’t see the growth potential to justify capital expenditure for investment.”
She added: “We’re committed to putting the welfare of our colleagues first when making these tough choices.
“Any decision to sell or close our stores follows an extensive period of careful appraisal, and enables the society to redirect resources into future growth and further improvements across the business for our members, customers and colleagues.”
The transfer is set to be completed within six months, the Grocer adds. The move will leave the independent retail co-op with 241 stores, including five acquired this year.
Central recently reported a 33.8% fall in underlying trading profit for the half-year, but has committed to investing £42m in its growth plans for this financial year. Ongoing investments include new stores and refurbishments, energy efficiency, solar and other sustainability measures, food pricing and store security.
Stores being taken over by Samy Ltd
- Barnby Dun, High Street – South Yorkshire (Closest store is Armthorpe)
- Broughton, High St – Northamptonshire (Closest store is St Johns Road, Kettering)
- Croft, Pochin Street – Leicestershire (Closest store is Broughton Astley)
- Desborough, Hill Top, Braybrooke Road – Northamptonshire (Closest store is Desborough, High Street)
- Dudley, Overfield Road – West Midlands (Closest store is Dibdale Road West, Dudley)
- Eastwood, Nottingham Road – Nottinghamshire (Closest store is Langley Mill)
- Enderby, Mill Lane – Leicestershire (Closest store is Whetstone)
- Kingstanding, Hawthorn Road – West Midlands (Closest store is Dyas Road, Great Barr)
- Leicester, Evington Rd – Leicestershire (Closest store is Clarendon Park Road, Leicester)
- Leicester, Narborough Rd – Leicestershire (Closest store is Hallam Crescent East, Braunstone)
- Narborough, Station Road – Leicestershire (Closest store is Hallam Crescent East, Braunstone)
- Peterborough, Mayors Walk – Cambridgeshire (Closest store is Hempsted)
Sprowston, Chartwell Road – Norfolk (Closest store is Brundall) - Stafford, Baswich Lane – Staffordshire (Closest store is Weeping Cross)
- Wigston, Blaby Road – Leicestershire (Closest store is Launceston Road, Wigston)
- Yardley, Stoney Lane – West Midlands (Closest store is Sheldon)
Stores being taken over by B&M
- Cromer, Middlebrook Way – Norfolk (Closest store is Wells-next-the-Sea)
- Erdington, High Street – West Midlands (Closest store is Marsh Lane, Erdington)
- Shepshed, Hallcroft – Leicestershire (Closest store is Anson Road, Shepshed)
