by Duncan Lamb
With consumer spending booming, national retailers are becoming evermore anxious not to “miss the boat” of the current bonanza. As the supply of new outlets fails to keep pace with the retailers’ demands their voraciousness for ready-made outlets grows.
Following on from the Argyll acquisition of 2m sq ft of Safeway stores, the struggle for control of retailing outlets continues with Tesco launching a £151m bid to take control of the 40 stores in the Yorkshire-based Hillards Group.
Tesco see the move as a further expansion from their traditional southern base — it would boost their local market share in Yorkshire from 3.5% to around 10%.
However, Hillards — one of the last independent market chains — have reacted unfavourably to the bid, saying it takes no account of the group’s prospects.
The chain have been expending considerable amounts recently on their stores, of which more than a quarter are of 25,000 sq ft or more.
Tesco are already undertaking a £350m development programme, but were keen for expansion in Yorkshire.
Also on the acquisition trail, but meeting a more favourable response, were Woolworth, who have made a £19m agreed bid for the Charlie Brown’s Car Parts Group.
The company have 40 centres around the country which Woolworth plan to merge with their five B&Q autoparts centres.
Lee Cooper are also increasing their national coverage by purchasing 38 leasehold shops from the Martin Ford Group for just under £6m.
The net book value of the shops being disposed of is around £222,000, with some £2m having been recently spent on them in refurbishment.
Having sold these shops, the Martin Ford Group say they will now concentrate on the Michael Barrie outlets, with plans for opening more shops and acquiring “further proven profitable trading businesses”.
