Southern Co-op to sell 22 food stores

Southern Co-op has decided to sell 22 company-owned food stores after battling “sustained market change and operating cost increases”.

The society, which runs 199 food stores, said 20 sites would be sold to two third-party retailers, while the remaining stores would be converted to Southern Co-op’s franchise operation, Welcome.

Existing colleagues at the affected stores will transfer to their new employer under TUPE regulations, which protects staff when a business or part of a business is transferred to a new employer.

Southern Co-op said it would work closely with the acquiring parties to ensure “a smooth transition, providing full support to colleagues throughout this process”.

“As a food business, we continue to evolve and develop our offering to meet the changing needs of our customers and members,” said Southern Co-op chief operating officer Simon Eastwood.

“The sale of these stores reflects our ongoing efforts to optimise our store portfolio and strengthen our long-term operating model and in no way reflects the hard work of colleagues.”

The society added that it remained committed to ongoing investment across its estate, which consists of more than 300 food, funeral and Starbucks coffee branches, with plans to open two new food stores later this year.

Over the past two years, it has bought six company-owned stores and opened 25 Welcome franchise stores with independent retailers.