ASDA and Co-op have confirmed that all employees of the Drakewalls store will retain their jobs after Co-op announced last week that it has sold its petrol forecourt estate to Asda for £600-million.

The Tamar Valley store, which became a Co-op in 2020, is part of the transaction which is expected to be completed by the end of the year.

The store currently employs 17 staff and is in the process of recruiting more.

A spokesperson for the Co-op said this week: ‘The transaction is expected to complete in the final quarter of this year. Following this there will also be a transition period for a period of time, where the store will still trade as Co-op, before transferring over to Asda.

‘The colleagues in this store will transfer over to Asda under TUPE — Transfer of Undertakings (Protection of Employment).’

The sale includes 129 established high-quality sites with a grocery retail store of between 1,500 and 3,000 square feet and attached petrol filling station, and three development sites.

They are located nationwide and will create a new and distinct format for Asda in the convenience market.

The sites being sold represent 5% of Co-ops retail estates of 2,564 stores. All 2,300 colleagues currently employed in the affected stores will retain their jobs.

Mohsin Issa, co-owner of Asda, said: ‘We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK.

‘We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.

‘We look forward to welcoming the Co-op colleagues to this new part of our business after we complete the transaction and due processes in the coming months.’

Co-op said the sale of its relatively small non-core petrol forecourt business would allow the company to focus on core convenience proposition whilst significantly strengthening the group’s balance sheet.

It will:

Reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities

Invest in Co-op’s pricing, store operations, technology, and logistics

Support the reduction of Co-op’s net debt

Shirine Khoury-Haq, chief executive at the Co-op said:

‘This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of co-operating for a fairer world while building our core leading convenience business.

‘I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.’

The Co-op Drakewalls store was opened followed a £1 million investment in August 2020.

The company undertook an extensive programme of works after acquiring the former Pearce’s Service Station and shop site, overhauling the fuel infrastructure, canopy and forecourt and reworking and refitting the 2,250 sq ft convenience store to serve the community. It had been closed for five months and work had been delayed due to the covid pandemic.

Cutting the ribbon to mark the opening was Co-op team leader Sarah Yeoman, who had worked at the site for 36 years.

Colin Olver, Co-op area manager, said at the time: ‘We have had a great response — we are delighted to have had the opportunity to make such a significant investment in Drakewalls.’