Sainsbury’s sets up c-store team
UK supermarket operator focussed on convenience growth
May 27 2003
Sainsbury’s has signalled that its intention not to beaten to the punch in the increasingly competitive UK c-store market.
The supermarket operator is setting up a dedicated convenience division to focus on expansion of the Sainsbury’s Local c-store format. The company hopes to maximise any opportunities which may arise to grow through acquisition.
The past year has seen Tesco acquire the T&S Stores chain while Co-op bought Alldays. Sainsbury’s has held negotiations with the consortium headed by John Lovering, which is currently considering whether to raise its offer for Somerfield. Sainsbury’s would help to finance a deal in return for the chance to acquire around 200 stores from the Somerfield and Kwik Save chains.
With Iceland also said to be a bid target and the eventual buyer of Safeway almost certain to be ordered to sell off some stores, Sainsbury’s is keen to ensure the Local format gains a share of the convenience sector, which is predicted to grow at a faster rate than mainstream supermarkets.
Sainsbury’s currently has 57 Local stores, with another 25 openings planned this year through organic growth.
