Sainsbury(J) PLC
18 February 2004
18 February 2004
J Sainsbury plc announces acquisition of convenience store chain
J Sainsbury plc today announces that it has acquired Bells Stores, a chain of 54
high quality convenience stores in the Teesside, Co Durham, Wearside and
Tyneside areas of north east England.
Bells Stores is owned and run by the Bell family and is widely regarded as a
leading player within the convenience store sector due to its strong operational
skills, advanced use of information technology and in-house distribution
systems. The stores are typically around 2,000 sq ft, predominately in
neighbourhood locations.
The acquisition continues Sainsbury's development within the convenience sector
and underlines its commitment to increase its presence in the £21.5bn a year UK
convenience market - one of the fastest growing segments in food retail.
Sainsbury's currently has 66 Sainsbury Local stores developed organically and a
further 15 in partnership with Shell UK Limited. In June 2003 it announced
plans to extend the joint fuel and convenience store operation to 100 Shell
locations across the UK. The acquisition of Bells Stores provides a further
expansion into neighbourhood convenience retailing and, when the Shell roll-out
has been completed, will take Sainsbury's presence in the convenience sector to
circa 220 stores.
The 54 Bells Stores will operate as a separate business unit and will continue
to be run by the current strong management of Steven Bell and David Graham.
Sainsbury's and Bells will work together to introduce Sainsbury's expertise in
fresh and convenience foods into the current Bells Stores offer. Bells' head
office and distribution centre will be retained, minimising the resource
required from Sainsbury's own business while delivering significant benefits
from increased expertise in the convenience sector.
Peter Davis, group chief executive of Sainsbury's said, 'This acquisition
delivers a highly respected management team and a successful neighbourhood
format strengthening our ability to grow our presence in the convenience market.
We know that the Sainsbury's brand works very successfully with the
convenience format and the Bells brand is an excellent match, standing for
quality, service and value. We look forward to developing our convenience
operation by sharing expertise with this first class operator.'
Steven Bell, Joint-Managing Director and Vice Chairman of Bells Stores said,
'We're delighted that we have been able to secure a deal with Sainsbury's that
enables us to continue to run our business on the same strong foundations
developed over the last 35 years. Sainsbury's provides access to an outstanding
product range which we know will appeal to our local customers and the financial
resources to continue developing our business in the north east region.'
Notes
1. Bells Stores was founded in 1968 by the current Chairman Les Bell and
is privately owned by the Bell family.
2. Net assets to be acquired at 31 October 2003 were £4.2million.
3. Sainsbury's launched its first three Sainsbury's Local pilot
stores in June 1998.
Contact
Media Jan Shawe
Pip Wood +44 (0) 20 7695 6172
Investors Roger Matthews
Lynda Ashton +44 (0) 20 7695 7162
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.