Somerfield - Co-op Takeover

ZootHornRollo

Hi,

Not sure if this is the right board or not. please feel free to move it if not.

I would like to know how the co-ops take over of Somerfield field effects somerfield stores in in areas where there are other co-ops. (its an employment query as my parnter works in a somerfield)

She works in a Somerfield which has a Lothian, Borders & Angus coop very near by. Would the 'main' co-ops take over lead to the somerfield being sold?

As far as i was aware co-ops such as Lothian & Borders are companies in thier own right and therefore would be in competition with the new owners of Somerfield. But there are rumours going around the somerfield store that the co-op will close down the somerfield (or sell it on) as there is already a co-op near by.

Could someone help clarify the situation for them please. They are all very worried about their jobs.

S0litaire

I'm not sure about co-op's but our local Somerfield's is closed for a refit, it's opening up as a Sainbury's sometime next week.

We don't have a co-op close by, but have a Morrisons, Tesco and ASDA a few mins drive away.

cazziebo

ZootHornRollo wrote: »

Hi,

Not sure if this is the right board or not. please feel free to move it if not.

I would like to know how the co-ops take over of Somerfield field effects somerfield stores in in areas where there are other co-ops. (its an employment query as my parnter works in a somerfield)

She works in a Somerfield which has a Lothian, Borders & Angus coop very near by. Would the 'main' co-ops take over lead to the somerfield being sold?

As far as i was aware co-ops such as Lothian & Borders are companies in thier own right and therefore would be in competition with the new owners of Somerfield. But there are rumours going around the somerfield store that the co-op will close down the somerfield (or sell it on) as there is already a co-op near by.

Could someone help clarify the situation for them please. They are all very worried about their jobs.

The only people that can clarify this are the management team involved. There will be feasibility studies, market research, risk assessments galore being carried out to assess which ones stay open, merge, close.

All people on here can give you opinions. You'd be better spending the time reading up on Tupe and redundancy rights...

safesound

Are you absolutely 100% sure its going ahead? I also work for Somerfield (Wales) and we keep getting told nothing is set in stone about the takeover and it may not happen. Personally I'm sure the shop staff will be the last to know (aren't we always :rolleyes:), so if you know something concrete I'd be very interested to hear it.

ZootHornRollo

safesound wrote: »

Are you absolutely 100% sure its going ahead? I also work for Somerfield (Wales) and we keep getting told nothing is set in stone about the takeover and it may not happen. Personally I'm sure the shop staff will be the last to know (aren't we always :rolleyes:), so if you know something concrete I'd be very interested to hear it.

http://www.ft.com/cms/s/0/459be310-530d-11dd-8dd2-000077b07658.html

safesound

Cool thanks, I can now go in tomorrow armed with a print out, and tell my manager that we are definitely being bought. I wonder if we will be unified under one brand or if they will continue to trade as separate identities. I think I'd like to work for the co-op, ANYONE has to be better than Somerfield at the mo, what with the new workforce management system (hate it, hate it!)

I don't have worry so much about my store because a) I'm good at my job, b) my DH knows the co-op regional manager , and c) there are no co-op stores within 5 miles of my current stores location.
I hope your girlfriends store doesn't close, its not nice to lose your job through no fault of your own.

bert&ernie

I don't think that the Co-operative group will keep the Somerfield name. They have recently re-branded almost all of their businesses as "The Co-operative: xx". They are likely to have to dispose of some of the Somerfield sites in order to keep the regulator happy.

Its also interesting to note that their strategy is generally not to compete directly with the big four supermarkets. I think its likely that they will concentrate on the somerfield stores in the small to medium floor size segment that don't overlap with existing co-op stores.

In general, I think this will be good news for most Somerfield employees. The current private equity owners haven't exactly won many friends amongst that staff with their short term strategy aimed at preparing the business for sale. The co-op couldn't be further from this in terms of its business strategy.

JPizzle

They'll probably sell the stores which are close together, so they may become Tesco Metro or Sainsbury's Local etc.

How come it says things like the OFT has to look at the deal due to competition when after the sale, the company will still only have a 5% share, compared to Tesco who have over 40%

ZootHornRollo

JPizzle wrote: »

They'll probably sell the stores which are close together, so they may become Tesco Metro or Sainsbury's Local etc.

How come it says things like the OFT has to look at the deal due to competition when after the sale, the company will still only have a 5% share, compared to Tesco who have over 40%

they will tend to look at communities which will end up having only one option (but maybe two locations) with whom to shop. i.e there used to be a co-op and a somerfield, now theres only two co-op's. in the case of the town where my GF works, there will be one 'The Co-operative' and one 'Lothian, Borders and Angus Co-operative'

ZootHornRollo

safesound wrote: »

Cool thanks, I can now go in tomorrow armed with a print out, and tell my manager that we are definitely being bought. I wonder if we will be unified under one brand or if they will continue to trade as separate identities. I think I'd like to work for the co-op, ANYONE has to be better than Somerfield at the mo, what with the new workforce management system (hate it, hate it!)

I don't have worry so much about my store because a) I'm good at my job, b) my DH knows the co-op regional manager , and c) there are no co-op stores within 5 miles of my current stores location.
I hope your girlfriends store doesn't close, its not nice to lose your job through no fault of your own.

your manager should already be completely aware of a take over as there was a conference call this morning telling them all about. There is also a statement with FAQ's on it.

musical_norwich

I think this takeover is terrible news. We have a Somerfield we use every day, and while it isn't as good or cheap as one of the big four supermarkets, it isn't bad and is local. Somerfield may have been run with a sale for the private equity owners in mind, but it does have a customer focus too.

We have some co-op stores nearby and they are very expensive, with a poor range and lazy, disinterested staff; most of the time they are virtually empty. Tesco opened a Tesco Express at a petrol station next door to one of the co-op stores which shows Tesco's confidence and contempt for co-op as a competitor. Of course, Tesco cleaned up and the co-op doesn't even have the commercial decency to close. With no owners to demand profitable trading the zombie store remains in its deathly state.

The paradox is the co-op, an organisation which has its customers as its owners, offers a poor range of shoddy goods at extremely expensive prices, and the staff hardly look to me as though they take pride in working for a company delivering a great service. Although it would make the founders of the co-operative movement turn in their grave, give me shareholder-owned supermarkets, be they public or private, every time.

Let's see whether the new expansive co-op becomes the next Equitable Life. It certainly offer similar value and I don't see how the senior management can be realistically held to account by its supposed owners. My guess is they'll spend, borrow and 'competitively remunerate' themselves until there is nothing left.