Mills kick-starts growth plan with Morgam deal

Convenience store business Mills has acquired 27 shops from Morgam News, expanding its reach into the West Midlands and South Wales.

According to Tyne & Wear-based Mills - which previously had 57 stores - the deal will increase turnover from£40 million to£58 million.

The newly-acquired outlets - in Birmingham, Coventry and Chepstow - will be refurbished by July 2004 to incorporate Mills' branding and layout.

A better-defined range of alcohol and magazines will be introduced, according to group managing director Nigel Mills. The retailer will start marketing the new stores in mid-November, with a local leafleting campaign.

Mills plans to continue growth by acquiring four to six stores a year, although this may rise if another match as good as Morgam is found, he said.