The Co-operative Group’s appetite for acquiring c-store chains is undiminished, despite taking over another 64-store company this week.

Chief operating officer for retail Malcolm Hepworth said the society was still on the lookout for further targets after buying West Country based Conveco for about £25m.

He said: “The market is accelerating at 100mph and we are ready and able to take advantage of any opportunities that arise.”

Hepworth said this week’s deal demonstrated that the Co-operative Group could still compete with and beat its much bigger rivals in the competition
for c-store acquisitions, and had a track record of integrating c-store chains into its business.

Prior to this week’s deal, the Co-operative Group had acquired 800 c-stores in the last 18 months with the takeover of Alldays in October 2003, and Balfour in June 2003.

Both businesses have been integrated into the group and refurbishment of the stores to the Welcome format has begun.

He revealed that the Co-operative Group worked closely with fellow society Plymco on the latest deal and that several Conveco stores were within Plymco’s territory.

He said: “Whether any of the stores are sold onto Plymco will be a matter for our board to consider. But Plymco is a good member of Co-operative Retail Trading Group, and if they were in a position to refit the stores quicker than we could, that would add to the turnover though CRTG.”

Conveco is currently supplied by Spar and 38 of its stores trade under the Spar fascia. Hepworth said one of his first tasks would be to meet representatives from Spar and confirm Conveco would honour any supply deals currently in place.

However, he pointed out that Co-operative Group already had a strong presence in the West Country and had capacity to service the new stores.

He was not able to say when Conveco would be integrated into the overall business, and said for the time being it would continue as a standalone unit.

David Mockford, who has just finished a stint as chief executive of Balfour, has been brought in as chief executive to take over from Tony O’Neill, who will leave after a handover period.

>>p16 Mockford in charge of Conveco
John Wood

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