Somerfield to open more stores

Mar 28 2008 by Our Correspondent, Western Mail

GROCERY chain Somerfield yesterday unveiled plans for more store openings amid further signs it has benefited from its local trading strategy.

The Bristol-based group said like-for-like sales excluding petrol had grown by 6.4% in the 12 weeks to Easter – well ahead of its larger supermarket rivals – as it seeks to become “Britain’s favourite local grocery shop”.

Chief executive Paul Mason said the performance was a “solid endorsement” of its local focus as it announced three new stores will open next month in Hove, Bristol and Hopton-on-Sea, Norfolk.

Somerfield currently has around 900 stores but plans to open around 250 more in the next three years, as well as refurbishing 200 existing stores.

The chain’s owners – a consortium including property tycoon Robert Tchenguiz, private equity firm Apax and investment bank Barclays Capital – are looking to sell the business although only one bidder, the Co-op, has reportedly submitted a bid. The consortium is said to be holding out for £2bn.

Somerfield, which employs 42,000 staff, has already spent £100m in the past 12 months revamping 250 current outlets. It expects the 250 new stores planned to add more than £500m to sales in 2010.