Scotland’s largest independent retail co-operative will team up with the owner of cut-price off-licence chain Bargain Booze, Conviviality Retail, to pilot a small number of stores in Scotland.
The Scottish Midland Co-operative Society (Scotmid), whose operations include Semichem toiletry shops, Fragrance House outlets, funeral parlours, a property division, and 190 convenience food stores throughout Scotland, will start the trial early next year.
It will see Scotmid become the exclusive Scottish franchisee of Conviviality Retail, which owns the UK’s largest franchisee-operated off-licence and convenience chain of more than 600 stores in England and Wales under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack brands.
The exact locations of the planned pilot stores and the brand name they will operate under has yet to be firmed up.
Scotmid chief executive John Brodie said: “We will be working with Conviviality Retail in the coming weeks to identify the initial sites for the pilot.
“Conviviality Retail is highly regarded in their marketplace, and together we offer each other a number of exciting potential opportunities to develop and grow both our businesses.
“If the trial proves successful for both parties, there is the potential for further stores to be rolled out across Scotland.”
Conviviality Retail chief executive Diana Hunter said: “Scotmid’s excellence in retail management, property and local distribution together with our unique brand and trading experience creates a compelling customer proposition, and allows us to expand geographically into Scotland.”
Conviviality Retail, which listed on the alternative investment market in July 2013, yesterday reported unaudited revenue broadly in line with last year at £183million for the 26 weeks to October 26, with like-for-like store revenue down 1.7%.
In September, Scotmid announced operating profits of £2.1million in the first half of 2014 – marginally ahead of the same period last year – despite a downturn in the food retailing market.