Scotmid Co-operative Society has sold its largest store to Tesco for an undisclosed sum.
The 40,000 sq ft store, in Leith, will be taken over by Tesco next month, with all 86 staff transferring across to the retailer.
“The strategy for our food business is to become Scotland’s preferred community convenience retailer,” said Scotmid chief executive John Brodie.
“Our Leith supermarket at over 40,000 sq ft – the largest store we have – did not easily fit into that strategy."
He added: “The deal to sell a store that fell out with that strategy and offered us an opportunity to grow and improve our business as a whole without the need for additional borrowing was too attractive not to consider.
“We are actively looking to acquire food convenience stores in Scotland and future Semichem [the group’s pharmacy chain] sites across the UK."
Scotmid plans 10 perfume shops in 2010 (6 February 2010)
Semichem launches TV ad campaign (26 September 2009)