Design

The Co-operative Group has today (16 July) announced an agreement with Somerfield to acquire the retailer's 880 grocery stores for £1.6bn.

The deal, which is still subject to competition authority approval, would strengthen a fifth multiple in the UK with around 3,000 stores and net sales of around £8bn.

A spokeswoman for the Co-op said there would be a 12-month integration period of the Somerfield stores to the Co-op brand following the completion of the deal.

She added that some of the stores would likely to be sold to other chains but it was too early to confirm more information.

Co-op chief executive Peter Marks said the deal would provide the "rocket fuel" for a three-year growth plan to revitalise the Co-op under a single brand.

In November the Co-op announced "streamlined packaging" to unify some 3,000 own-brand products.