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German retailer to join forces with Sainsbury’s and Somerfield

Tchibo, the German retailer and coffee shop chain, is joining forces with J Sainsbury and Somerfield to expand in the UK.

The goal is to create 200 shops-in-shops within Somerfield and Sainsbury’s during 2006. These will offer Tchibo-branded coffee and consumer goods.

Both Sainsbury’s and Somerfield lag behind their rivals Tesco and Asda in their non-food offering.

Tchibo, Germany’s second-largest consumer goods company, is also rapidly expanding its own high-street outlets from 40 to 60 this year. There are around 1,000 outlets already.

References: The Independent on Sunday Business 11/12/05 page 2

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