UK-based supermarket chain Morrisons has entered into an agreement with Asda to acquire 120,000 sq.ft of additional selling space through the purchase of 16 former Netto UK stores at a cost of £28.1 million. Obtaining the stores is conditional upon the successful completion of Asda’s acquisition of Netto UK with final approval by the Office of Fair Trading.
Employees already working at the Netto stores will transfer to Morrisons under TUPE regulations.
Dalton Philips, chief executive, Morrisons, said, “These additional stores are an important next step in Morrisons’ growth. We are building on our strategy to bring Morrisons’ unique offer of freshly prepared, affordable food to more people in Britain.”
“These stores will fit very well into our portfolio of the 437 existing stores. The additional selling space is incremental to the 500,000 sq.ft target already outlined for 2011-12,” he added.
The handover of the stores is expected to take place in a phased manner commencing in March, with completion of the conversion to the Morrisons format expected to take three months.
– IndiaRetailing Bureau