Co-operative Group will consider rolling out CTN shops after acquiring a tranche as part of its£30 million purchase of convenience store chain Balfour.
The Co-op bagged 76 c-stores and 35 newsagents in the deal, bringing an additional 126,000 sq ft (11,700 sq m) of selling space. It is the first time that the Co-op will have had CTNs in its portfolio.
Co-op chief operating officer Malcolm Hepworth said that the retailer will see how the newsagents perform under its ownership. If they are successful, more such stores may open in the future.
He said: 'We need to make sure we have the right formula and get good cash returns from the CTN stores. But this acquisition gives us the opportunity to test the format and see what it could give us.'
Balfour's executive chairman Charles Brims and chief executive Mike Taylor have left the business following the sale.
Hepworth added that the Co-op will remain on the acquisition trail to ensure that it consolidates its position, and will look closely at any relevant business that comes up for sale.
Last October, the Co-op acquired the 600-strong Alldays chain for£133 million and is now converting those stores to its own fascia at the rate of six a week.
Hepworth said that the 40 shops converted to date have generated, on average, sales uplifts of approximately 30 per cent.
In 2002, Co-op's food sales increased 9 per cent to£2.6 billion, while profits leapt 52 per cent to£69.5 million.
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