Tesco nears complete conquest of UK
Press Association
guardian.co.uk, Friday March 28 2008
http://www.guardian.co.uk/business/2008/mar/28/tesco.supermarkets
Supermarket giant Tesco has taken a step closer to complete retail conquest of the country after buying stores on several remote Scottish isles.
The move means the retailer now has branches in every Scottish postcode area.
It leaves the Harrogate area in Yorkshire as the last in the UK without a Tesco presence.
The purchase of the six Somerfield stores takes Britain's biggest retailer into the Northern and Western Isles, which had previously been without a Tesco.
The retailer has faced accusations that it has a near monopoly of the UK grocery market, with protest groups forming across the country.
In Inverness - which has been dubbed "Tesco Town" - a bid by the retailer last year to build a fourth store in the Highland capital prompted more than 1,000 people to sign a petition opposing the application, which was rejected by councillors.
In a report to the Competition Commission last year, Tesco said that far from dominating the supermarket sector in British towns and cities, 98.6% of shoppers now have access to stores of the five largest chains.
In the latest deal, stores in Orkney, Shetland, Lewis and Wester Ross were purchased, along with Aberdeen and Paisley.
The 470 jobs at the six stores would remain, Tesco confirmed, while there would also be further investment in each store with the potential for more jobs.
Tesco would not disclose the price it paid Somerfield in the deal, which will see outlets open in Lerwick, Kirkwall, Stornoway and Ullapool, as well as Aberdeen and Paisley.
A spokesman said: "Tesco is delighted to be bringing its offer to new customers in Scotland and on the Scottish Islands and looks forward to contributing to these vibrant communities."
