Search

Co-op unveils pub site expansion

12:29 07 April 2014

Photo: Nick Ansell/PA Wire

Photo: Nick Ansell/PA Wire

The Co-operative is to open 54 shops on pub sites over the next two years as it looks to step up expansion of its 2,000-strong convenience store estate.

Most of the new stores will be built on car parks and other land next to the public houses, with the rest coming from converted pubs to help the mutual grow its estate by 150 in each of the next five years.

The deal involves around a quarter of the 202 pub sites that retail property group NewRiver bought from Wolverhampton-based brewer Marston’s in November for £90 million.

Most of the sites are located in central, eastern and northern England and the first shop is set to open its doors early next year. Each store will be between 3,000 sq ft and 4,500 sq ft, with almost 200,000 sq ft of new retail space set to be developed in total.

Steve Murrells, chief executive of the Co-op’s retail division, said: “Our focus is on convenience stores and a move away from larger stores, as we look to highlight our strengths and consolidate our position as number one in the competitive convenience market.”

Larger players in the food retail market such as Tesco and Sainsbury’s have also been pulling back from an earlier ‘space race’ to focus on smaller convenience stores.

NewRiver is the third-largest owner of shopping malls in the UK by number. Its property portfolio includes Hillstreet Shopping Centre in Middlesbrough and The Forum Shopping Centre near Newcastle.

According to analysts at Liberum, NewRiver’s deal with Co-op will generate around £13 million in development profit, assuming an average rent of £16.25 per sq ft in the 15-year lease agreement.

0 comments

HOT JOBS

Show Job Lists

Insight

Employers in East Anglia are paying staff more and looking at benefits packages in a bid to attract and retain staff.
Photo credit: Philip Toscano/PA Wire

If you excel at your job then now might be the time to speak to your boss about a pay rise or equally look for an upgrade in your benefits package.

                                 Managing Director of Bakers and Larners of Holt, Michael Baker, pictured at the Holt department store.

Picture: MARK BULLIMORE

Family businesses are the lifeblood of the economy, but can often be weighed down by tradition. Now a report seeks to champion the region’s oldest family firms. Business writer SABAH MEDDINGS reports.

Green 100

cover

Enjoy the Green 100
digital edition

Read

Mustard TV

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Shaun Lowthorpe

Business Publishing Editor

|

Sabah Meddings

Business Writer

|

Kate Royall

Business Writer

|

Duncan Abel

Business Development Manager

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100

Business Most Commented

Newsletter Sign Up