The Co-op group has signed a franchise deal with Zuber Issa’s forecourts business EG On The Move that will see Co-op franchises opening at petrol stations across the country.
Zuber Issa is now focusing on forecourts after a pair of massive deals last month that saw him separate his corporate interests from those of his brother Mohsin. Zuber bought the remaining forecourt operations at family business EG Group, as well as select food service locations, in a £228m deal, while he also offloaded his stake in Asda.
His EG On The Move business aims to grow by over 120 sites in the next three years. The new deal with Co-op will see seven new Co-op franchise stores open this summer, with the first opening in Doncaster this week.
Co-op itself wants to grow its franchise business to over 500 by 2030 and intends to work with “quality franchise partners” including forecourt operators, universities and independent convenience retailers.
READ MORE: Zuber Issa sells 22.5% stake in Asda to TDR Capital – and buys EG Group forecourts in £228m deal
Jerome Saint-Marc, Co-op’s managing director B2B and growth, said: “We are hugely excited to be working with EG On The Move on these new franchise sites and to be able to bring our Co-op franchise offer to more locations.
“This is part of our broader expansion in the petrol forecourt market. It follows our strategy to pivot our growth in this market through franchise, growing our presence and enabling us to best utilise our expertise and offer in convenience.
“As part of the Co-op’s overall growth plans, growing our franchise stores is a key priority for us and we have ambitious and exciting plans to significantly increase our franchise footprint and become the partner of choice across a range of sectors.
“We’ve got an excellent market proposition. And whilst it’s highly competitive, we believe there’s huge potential to unlock growth with our trusted brand, and unique offer and expertise.”
Zuber Issa, CEO, EG On The Move, said: “EG On The Move is an acknowledged petrol forecourt and convenience retail destination operator, and we are delighted to have the opportunity to collaborate with Co-op to roll out their new convenience store formats. Following on from this seven store trial, we look forward to working with Co-op to consider other locations across the network.
“Co-op is a well-established convenience operator, respected in the market and a recognised consumer brand, and this partnership not only promises to enhance our convenience store offer but it will also ensure our customers have access to exceptional fuel retail services including EV charging, a wide choice of essential and premium grocery and merchandise along with an enjoyable foodservice experience.”
Martin Rogers, director of partnership development, Co-op, said: We are delighted to be working with EG On The Move, our second forecourt partner, helping us achieve our ambitious plans in this exciting sector. We look forward to further growing our franchise business, working with partners of pedigree to bring Co-op products and membership to more communities, creating more value for our member-owners.”
The first seven locations will be:
Doncaster, Ogden Road Billinghurst, Sussex Nitshill, Glasgow, Lanarkshire Portlethen, Aberdeenshire Macmerry, Tranent, East Lothian Wherstead, Ipswich, Suffolk Finmere, Tingewick, BuckinghamshireIn June Zuber Issa sold his stake in Asda to the supermarket chain’s private equity investor, TDR Capital, and completed the £228m deal for EG Goup’s forecourt operations. The deals also saw Zuber step down from his role as co-chief executive of EG Group with Mohsin becoming sole CEO, though Zuber remains an investor at EG Group and is a non-executive director.
At the time, Zuber said: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.
“I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
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