18 August 2005
18 August 2005
Sainsbury's acquires nine stores from Morrisons
Sainsbury's has agreed to acquire a further nine Safeway branded stores from
Morrisons. The stores are leasehold and eight are located in the South of
England with one in Scotland.
Justin King, chief executive said, "These stores give us over 175,000 sq ft of
new space, and have an average size of around 20,000 sq ft. They will provide
an opportunity to strengthen our market position in town centre locations and
deliver future growth. We look forward to welcoming 100,000 new customers and
1,220 new colleagues to Sainsbury's."
The gross asset value of the stores at 30 January 2005 was approximately £16.8m.
It is anticipated that the acquisition of these stores will be earnings
enhancing in their first full year of operation.
Each store acquisition is conditional upon approval from the OFT. The
acquisition is expected to complete in three tranches in the autumn of 2005.
The stores will then be closed for six weeks while they are refurbished and
reopen under the Sainsbury's fascia ahead of Christmas.
Last year, Sainsbury's acquired 14 stores from Morrisons (13 Safeway branded
stores and one Morrisons store) located primarily in the Midlands and the north
of England. All these stores are now open and trading well.
Investor Relations Media
Lynda Ashton Pip Wood
+44 (0) 20 7695 7162 +44 (0) 20 7695 6127
Store Locations Address
Hammersmith Kings Mall
Morden London Road
Slough Farnham Road
Andover Borden Gate
Eastleigh Leigh Road
Bitterne West End Road
Midsomer Norton High Street
East Kilbride 120 Olympia Centre
Acocks Green Warwick Road
This information is provided by RNS
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