Co-op to close 10 department stores

Co-operative Group is in discussions about the potential sale of part of its department store network to Anglia Regional Co-operative Society.

Disposal of the shops would be in line with Co-op Group's plans to exit the department store sector over the next two years. At present, the retailer operates 36 department stores and will close 10 of them in February in the first phase of the programme.

Co-op intends to sell as many of the remaining 26 stores as possible as going concerns, but those that have not been offloaded by February 2007 will be closed. Pilot home stores at Perth and Tunbridge Wells (pictured) opened last year will be unaffected by the scheduled closures and, if the trial outlets are successful, there are plans to open two more.

The department stores decision follows a 'detailed strategic review' of Co-op Group's department store business last year, when the division posted a loss of more than£4 million against a historic backdrop of poor performance.

Co-op Group deputy chief executive Paul Hewitt said: 'The review concluded that a complete exit from the sector, disposal of the stores and reinvestment of the proceeds into our core business was the only commercial option. We will be closing the 10 biggest loss makers in February.'

Co-op Group's department stores are concentrated in the Southeast, Northeast and Scotland.

Co-op Group will continue to develop E-Store, a joint venture with United-Co-operatives, which sells electrical goods and beds.