The Co-operative Group has confirmed it is in talks to buy Somerfield, as its food stores report full-year like-for-like sales growth of 4.6%.
Peter Marks, CEO of The Co-op Group, confirmed the society was in serious discussions with Somerfield. It was currently carrying out due diligence, but there was no certainty that a transaction would proceed.
A deal could be finalised by the summer, he added.
Meanwhile, The Co-op Group's food business has reported a 50.5% increase in pre-tax profit on sales up 21% at £3.68bn for the year to 12 January.
The results were boosted by the society's merger with United Co-operatives last year, as well as an ongoing £200m store refurbishment programme.
“In our core food business the momentum generated during 2007 has continued into 2008 with strong like-for-like sales in the first three months,” Marks added. “We expect this to continue throughout the year, boosted by the rebranding programme, which is generating significant sales uplift.”
Peter Marks, CEO of The Co-op Group, confirmed the society was in serious discussions with Somerfield. It was currently carrying out due diligence, but there was no certainty that a transaction would proceed.
A deal could be finalised by the summer, he added.
Meanwhile, The Co-op Group's food business has reported a 50.5% increase in pre-tax profit on sales up 21% at £3.68bn for the year to 12 January.
The results were boosted by the society's merger with United Co-operatives last year, as well as an ongoing £200m store refurbishment programme.
“In our core food business the momentum generated during 2007 has continued into 2008 with strong like-for-like sales in the first three months,” Marks added. “We expect this to continue throughout the year, boosted by the rebranding programme, which is generating significant sales uplift.”
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