Somerfield sells Kwik Save stores

Supermarket group Somerfield has sold 171 of its Kwik Save stores and the brand to a new operator specifically set up to run the business. A further 77 Kwik Save stores are to be sold to other retailers.

The new owner is believed to be a consortium headed by Peacocks chief executive Richard Kirk.

Somerfield says it will focus all its future investment on the Somerfield brand and will convert its remaining 102 Kwik Save stores to the Somerfield fascia to create a single-brand retail group with more than 1,000 UK stores.

The operation of Kwik Save alongside the core business at Somerfield has been unsuccessful and Kwik Save has incurred substantial losses.

Hard discounter Netto is thought to be interested in taking a parcel of stores as it looks for ways to speed up expansion in the UK. Other hard discount formats, such as Costcutter, Aldi and Lidl are also thought to be interested in Kwik Save sites.

Retail union Usdaw said it is in talks with the new Kwik Save owner over integration of staff and would be supporting workers at the stores sold off to other operators.