Sainsbury's pulls petrol station store trial with EuroGarages

Sainsbury’s is severing its ties with petrol station operator EuroGarages, culling a trial of stores on forecourts in a blow to the grocer’s ambitions in the convenience market.
It sealed a tie-up with EuroGarages two years ago to trial shops on six of its sites; the first time it had allowed another company to use its branding.
The move was part of attempts by Mike Coupe, the Sainsbury’s chief executive, to get to grip with rapidly-changing shopping habits.
Sainsbury's pulls petrol station store trial with EuroGarages

Mike Coupe, the chief executive of Sainsbury's, is battling to make the most of changing shopping habits

Sainsbury’s already has 809 convenience stores to cater for shoppers who prefer smaller top-up trips to local stores than big, weekly visits to supermarkets. However, rising business rates and rental costs have weakened the profitability of many high street locations, meaning it has scaled back its plans for Sainsbury’s Local shops to 25-a-year from 44 the year before.
Sources said that the EuroGarages partnership hadn’t lived up to either sides’ hopes.
Sainsbury’s has already had two failed stabs at boosting its exposure to the convenience market after abandoning a bid for Palmer & Harvey and a takeover of convenience group Nisa.
Sources have said that Sainsbury’s was more interested in supply deals than a full takeover of either business. Nisa has since been bought in a ?143m deal by the Co-op.
Morrisons is trialling 10 petrol station shops owned by forecourt operator Rontec after selling off its own loss-making M Local convenience chain and has struck a wholesale deal to supply 1,300 McColl’s shops.
See also:
Leave a comment
  • Latest
  • Read
  • Commented
Calendar Content
«    Июль 2020    »