Co-operative Group snap up Somerfield...

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Monday Jul 21
A Ł1.57 billion deal

The Co-Operative Group has officially bought Somerfield for Ł1.57 billion making it Britain’s fifth biggest supermarket chain.

Co-op Chief Executive, Peter Marks, said the acquisition would lead a renaissance of the Co-op brand across the country and provide a greater choice for consumers.

“This is great for our business and in my view propels us back to the Premiership of food retailing,” he said. “People talk about the Big Four, I hope people will soon talk about the Big Five."

Tesco currently holds the largest market share with 31.6%, with Asda and Sainsbury’s holding 16.7% and 15.9% respectively. Morrisons currently holds an 11.5% share while the Co-op now has the fifth largest market share of 7.7%.

The expanded Co-op business will now have over 3,000 stores and combined net sales of Ł8 billion, which doubles the Co-op’s share of Britain’s grovery market to almost 8 per cent.