The Co-operative Group, which is currently in exclusive talks to buy Somerfield, has set out ambitious plans to open 400 new stores in the next three years.

Speaking exclusively to The Grocer, Tim Hurrell, head of food retail designate for The Co-op Group, who takes over from Guy McCracken in July, said that opening new stores would be a priority for the group.

"Our rebranding has given us a good foundation to extend our portfolio," he said. "There will be a particular focus on new stores because we have found our greatest success is in building stores from scratch."

An ongoing £200m refurb programme of the 2,223-strong store portfolio was on track, added McCracken. Following last year's £86.3m investment in 379 store refurbishments, the revamped stores had seen like-for-like sales growth of 13.7% and almost double-digit growth in fresh produce, bakery, prepared foods and wine, he said.

Some 700 stores would be refitted this year with a renewed focus on the 600-strong estate of small to medium-sized supermarkets following successful trials in five 'market town' format stores, he added.

The Co-operative Group also planned to improve its distribution network, said Hurrell. "We are investing in plans for new, larger multi-temperature distribution centres in the north west and north east of England, and Scotland," he revealed.

Neither would be drawn on whether the plans would be affected by a takeover of Somerfield, but Hurrell admitted last year's merger with United Co-operatives had affected store openings. "We had no real time to open new stores because of the merger but we are now keen to develop and acquire new stores," he said.

Meanwhile, the society would develop its premium Truly Irresistible range and launch new Fair Trade, British and food-to-go lines as well as extend The Co-operative Farms range.

Among the produce grown on its 70,000 acres of farmland are new potatoes, which arrived in Cornish stores last week and apples for its Truly Irresistible English Apple Crush, which went on sale in stores nationwide this week.

Fresh Produce p60

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