A round-up of supermarket news and gossip
Grocery discounters Netto, Aldi and Lidl will advance their march on British high streets after buying a large tranche of Kwik Save stores. Somerfield, the supermarket group recently bought by Apax Partners, Barclays Capital and Robert Tchenguiz, has sold 278 of Kwik Save’s 380 stores for an estimated £200m as part of its strategy to become a single-brand company. Netto, the Danish discounter, has bought 19 stores, increasing the size of its chain by nearly 13%. Aldi has added 20 to its existing 300 stores. Lidl is thought to have bought about seven.

Until now, discounters have struggled to gain a firm toehold in Britain despite controlling a large part of the market in continental Europe. Netto, Aldi, and Lidl together control only 5% of the market, a sixth of that held by the UK’s biggest supermarket.

Iceland, Tesco, Asda and Marks and Spencer have all picked up one or two Kwik Save stores from Somerfield. The balance of 102 Kwik Save stores retained by Somerfield are to be converted into its flagship chain. The remaining 171 are being sold to Back to the Future, a new company backed by a group of investors including Richard Kirk chief executive of Peacock Group.

Sainsbury has suspended its membership of the British Retail Consortium. Observers believe Asda could soon follow. Disagreement is believed to be on a number of issues.

Morrison is finally looking outside its own resource bank for its new chief executive. Sir Ken dismissed as pure rumours that he was in disagreement with non-executive directors on the recruitment process.

John Lewis Partnership, which embraces Waitrose has reported a 10% rise in annual profits to £252m. It has been portrayed as the strong preying on the weak, with Sainsbury and Tesco ruthlessly and systematically extinguishing the British corner shop. But the decision to refer supermarket chains to the Competition Commission is largely the result of a single lobbyist working on the powerful trade associations that represents thousands of small shops. An inquiry into the grocery sector will cost the four biggest supermarkets at least £25m in adviser’s fees. The 18 month inquiry looks set to be a bonanza for competition lawyers with the four largest supermarkets – Tesco, Sainsbury, Asda and Morrison.

It is reported that the French secret service have drawn up a confidential list of French companies that could be liable to hostile bids by foreign investors. Carrefour and Casino the supermarket groups are believed to be on the list.

Marks and Spencer has “asked” its suppliers for discounts of up to 5.5% in a move that could save an estimated £40m in buying costs and help fund the latest advertising campaign. A major research company said M&S spent £23.9m on advertising between September and December last year, which is 23% more than a year earlier.

Sainsbury said that 10,000 staff would share in a £16m payout as two share-save schemes reach maturity. This is the first significant payout since 2002.

Protestors who spent 16 days in trees in an attempt to prevent them being cut down to make way for a supermarket in Shepton Mallet, have been evicted from the site. Tesco received a High Court order to remove the protestors.

Carrefour opened its 100th hypermarket in Morumbi in Brazil. The same company opened the Zhengzhou Beihaun hypermarket in China Henen province.

German-based Metro Group plans its entry of the retail division cash and carry into Islamabad, Pakistan.

The Co-operative Group has announced two key business initiatives to underpin its home store format. The group is to invest a further £3m in the format by opening two further outlets by the end of 2006.

Waitrose is aiming to reach the Government’s targets on salt reduction set for 2010, by 2007.

GEMINI