Co-op's rebranding scheme signals end of Somerfield

Published on Wednesday 7 October 2009 20:56

SOMERFIELD'S brand name will start disappearing from Scotland's high streets today as new owner Co-operative launches a £36 million re-branding scheme, writes Peter Ranscombe.

Glasgow's Castlemilk Somerfield is the first to re-open with its new livery and will be followed by more than 90 stores across Scotland, which are due to be converted before the end of next year. In the first phase of the re-branding, the Co-op will spend 6m refitting 14 stores and changing the fascias on nine branches and one filling station before the new year.

The Co-op bought Somerfield in February for 1.56 billion, making the group the fifth-largest player in the UK grocery sector with an 8 per cent share.

Under the terms of the deal, the Co-op was ordered to sell off shops at 29 locations throughout Scotland in order to satisfy Office of Fair Trading's competition concerns.

The group will give an update on its progress in finding buyers for the shops along with its interim results on Monday.

It has also sold Co-op and Somerfield stores for "commercial reasons", with 24 going to Sainsbury's in March and 38 to Morrisons in December.

John McNeill, chief officer of the Co-op's food business in Scotland, said: "This investment will provide customers with an enhanced service, contribute to the growing financial success of the business, create new jobs and see us rival Morrisons as the third-largest retailer north of the Border."