Tuesday, July 9, 2024 10:15 a.m
The Co-op is set to open new stores at petrol stations across the country after signing a deal with one half of the billionaire Iss brothers.
The Manchester-based group has signed a franchise deal with EG On The Move which will see seven new Co-op stores open at petrol stations this summer.
EG On The Move recently announced plans to expand by more than 120 locations over the next three years.
The Co-op has also announced plans to increase the number of its franchise stores to more than 500 by 2030, across petrol forecourts, universities and convenience stores.
The move comes after the Co-op sold its petrol stations business to Asda for £661m in 2023.
It also comes after one half of the billionaire Iss brothers sold their stake in Asda to the private equity giant, which the pair have been working with to secure a £6.5bn takeover in 2021.
Funds managed by TDR Capital last month agreed to acquire Zuber Issy’s stake in the Leeds-based chain.
Mohsin Issa will remain a co-owner of Asda alongside TDR Capital. The move means the private equity giant now has a 67.5 percent stake in the supermarket, while Mohsin Issa will hold 22.5 percent.
Another 10 percent is owned by the former owner of Walmart. The deal is expected to close in the third quarter of 2024.
It was also announced that Blackburn-based EG Group has agreed to sell its remaining UK yard to Zuber Issa for £228m.
Jerome Saint-Marc, Co-op’s managing director of B2B and growth, said: “We are extremely excited to be working with EG On The Move on these new franchise sites and to be able to take our Co-op franchise offering to more locations. .
“It is part of our wider expansion in the petrol market. It follows our strategy to drive our growth in this market through franchising, allowing us to share our convenience expertise with pedigree partners.
“As part of the Co-op’s overall growth plans, expanding our franchise stores is a key priority for us and we have ambitious and exciting plans to significantly increase our footprint and become the preferred partner across a range of industries.
“We have an excellent market offer. And while highly competitive, we believe there is huge potential to unlock growth with our trusted brand and unique offering and expertise.”
The Co-op currently operates nearly 2,400 grocery stores and supplies products to more than 6,000 other stores, including stores run by independent co-ops and through its Nisa wholesaler.
Last month, City AM announced that Nisa Retail has seen a rise in revenue after its parent company partnered with Just Eat to offer home delivery.
The company, which supplies more than 4,000 convenience stores and small supermarkets in the UK, including Costcutter, increased its revenue to £1.42 billion in the 12 months ending January 7, 2024, from £1.38 billion a year earlier.
But despite the increase in sales, the company saw its pre-tax profit fall from £20m to £14.9m in the 12 months.
EG On The Move CEO Zuber Issa said: “EG On The Move is a recognized operator of petrol forecourts and retail destinations and we are delighted to have the opportunity to work with the Co-op to launch their new convenience store formats.
“Following on from this seven-store trial, we look forward to working with the Co-op as we consider further locations across the network.
“The Co-op is a well-established convenience operator, respected in the market and a recognized consumer brand, and this partnership not only promises to enhance our self-service offering, but will also give our customers access to an exceptional fuel retail service, including electric vehicles. charging, a wide selection of basic and premium foods and goods along with a pleasant dining experience.”