Co-op sinks cash into Scotland with new stores
● Nearly 20 new stores and 275 jobs on the way for supermarket group in 2018
A retailer will open outlets in the Highlands and Fife among 18 new stores to be rolled out across Scotland this year.
Co-op plans to invest £28 million in the expansion, which will also see a further 20 shops upgraded across the country.
New stores are earmarked for Forres in the Highlands, Kilmacolm in Renfrewshire and Kelty in Fife creating 275 new jobs.
leading supermarket retailer is to create hundreds of Scottish jobs this year as it prepares to open 18 new stores in Scotland as part of a major UK expansion drive.
The Co-op Group’s food division, which has a 6 per cent market share of UK food retailing, announces today that it is to invest £28 million in the expansion north of the Border, which will also see a further 20 shops upgraded.
The Co-op said the move to deepen its Scottish footprint would create 275 jobs in 2018, taking its total Scottish headcount to almost 6,000.
John Mcneill, divisional managing director, said: “Such sustained investment is indicative of our long and proud history in Scotland – we are passionate about serving the many diverse communities across the country and want to give shoppers the opportunity to buy what they want, when they want it, in great looking stores that also give back to the community.”
New outlets planned include Forres in Moray, Kilmacolm in Renfrewshire, Kelty in Fife, and Glasgow and Edinburgh.
It is part of the Co-op’s Ukwide plans to invest £160m in 100 new premises and 150 store makeovers this year, which will create an estimated 1,600 jobs.
The Co-op is now the fourth largest retailer in Scotland, having seen sales growth of 3 per cent in the past year. Independent data says customers visit its stores twice a week on average.
Mcneill added: “2017 has been a terrific year for the Coop in Scotland and we know our story is really resonating with customers – not only from a sales point of view but also from a membership one.
“We’re proud to say that 500,000 new members have enjoyed earning a 5 per cent reward for themselves, whilst at the same time giving out millions of pounds to Scottish good causes.”
Today’s news follows the announcement of an agree ment for the Co-op to become the exclusive wholesale supplier to the 2,200 Costcutter Group stores, and the deal to buy convenience store chain Nisa Retail.
The latter, which is conditional on Competition and Markets Authority approval, saw the Co-op go head-to-head with Sainsbury’s.
Jo Whitfield, chief executive of Co-op Food, said: “The Coop is positively responding to the changes occurring within this dynamic sector. Our food business is going from strength to strength in what is clearly a challenging retail market.”
The Co-op is the sixth biggest food retailer in the UK behind the big four of Tesco, Sainsbury’s, Asda and Morrisons, and German discounter Aldi.
It has a bigger market share than Lidl, the other German discounter, and Waitrose.
Stuart Hookins, Co-op’s director of portfolio and development, said: “Our expansion plans for 2018 will mean that the Co-op is on track to have opened at least 100 new stores in each of three consecutive years.”