Big 4 grocer Asda has bought all 132 petrol forecourt sites from Co-op for a total value amount of £600 million, as part of its ongoing bid to expand further into the convenience market.
The transaction will include 129 nationwide petrol forecourt sites set with a grocery retail store between 1,500 and 3,000 square feet and each with a petrol filling station, as well as three development sites.
For Co-op, the sale – which represents 5% of its retail estate – will help it to focus primarily on its core convenience business.
The retailer looks to re-invest into its retail estate, wholesale, franchise and ecommerce operations by adding new convenience stores. The move will also help the Co-op invest in pricing, store operations, technology and logistics, while supporting the reduction of its net debt.
Due to be complete by the end of 2022, the deal will see the 2,300 employees of the acquired stores, which delivered net sales of £863 million for 12 months to June 2022, transferred to Asda’s employment following completion and after a transition period.
“We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK,” Asda co-owner, Mohsin Issa said.
“We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.
“We look forward to welcoming the Co-op colleagues to this new part of our business after we complete the transaction and due processes in the coming months.”
Co-op chief executive, Shirine Khoury-Haq added: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”
