Peter Marks’ vision of a single co-operative society moved a step closer to fruition this week after Lothian Borders & Angus Co-operative Society said it was considering merging with The Co-operative Group.
The society, which operates 66 food, pharmacy, petrol, funeral and non-food stores in Scotland, said it would table merger plans with its members at a series of meetings in the autumn.
It is the first smaller co-op society to join forces with the might of The Co-operative Group following its £1.57bn acquisition of Somerfield last month to transform it into the UK’s fifth-largest supermarket chain, with more than 3,000 stores and sales of £8bn.
“We have a robust trading position and a strong balance sheet,” said Bob Jamieson, CEO of Lothian Borders & Angus Co-op. “But we believe the best way to maintain co-operative trading in the areas in which we operate is to seek this merger now.
“The long-term future of the co-operative movement is best served by greater consolidation, with the ultimate objective of creating one highly successful society covering the whole of the UK. By proposing this merger from strength, we believe we can help bring that objective about.
”The Co-op Group CEO Peter Marks has been calling for several years for the 30-plus separate co-op societies in the UK to merge.
“Lothian Borders & Angus Co-op is a very strong, well-run society and I am delighted that its board and management share our vision,” Marks said.
In February, Lothian Co-op agreed to rebrand its stores with the society’s ‘The Co-operative’ fascia by the end of the year. The society employs 1,200 staff and in the year to 28 January recorded turnover of £123m and operating profit of £4m.
“I am confident that our members and regular shoppers can only benefit from the extended services offered by the Group,” added Jamieson.
The society, which operates 66 food, pharmacy, petrol, funeral and non-food stores in Scotland, said it would table merger plans with its members at a series of meetings in the autumn.
It is the first smaller co-op society to join forces with the might of The Co-operative Group following its £1.57bn acquisition of Somerfield last month to transform it into the UK’s fifth-largest supermarket chain, with more than 3,000 stores and sales of £8bn.
“We have a robust trading position and a strong balance sheet,” said Bob Jamieson, CEO of Lothian Borders & Angus Co-op. “But we believe the best way to maintain co-operative trading in the areas in which we operate is to seek this merger now.
“The long-term future of the co-operative movement is best served by greater consolidation, with the ultimate objective of creating one highly successful society covering the whole of the UK. By proposing this merger from strength, we believe we can help bring that objective about.
”The Co-op Group CEO Peter Marks has been calling for several years for the 30-plus separate co-op societies in the UK to merge.
“Lothian Borders & Angus Co-op is a very strong, well-run society and I am delighted that its board and management share our vision,” Marks said.
In February, Lothian Co-op agreed to rebrand its stores with the society’s ‘The Co-operative’ fascia by the end of the year. The society employs 1,200 staff and in the year to 28 January recorded turnover of £123m and operating profit of £4m.
“I am confident that our members and regular shoppers can only benefit from the extended services offered by the Group,” added Jamieson.
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