Morrisons’ plan to expand by buying 16 former Netto discount stores from rival Asda has been described as an important move in the firm’s plans for growth.

The £28 million purchase will increase the Bradford-based supermarket’s network to 453 stores.

Morrisons’ chief executive Dalton Philips said it was an important step and was in addition to its plans to add another 500,000 square feet of space over the next year.

Buying the former Nettos is conditional on Asda’s planned £780 million acquisition of Netto being given approval by the Office of Fair Trading which ordered it to sell 47 Nettos for competition reasons.

Asda has found buyers for all the sites including three to Iceland and 20 to independent chain Haldanes. It is still seeking buyers for eight Netto stores, including Keighley.

The handover to Morrisons is due to begin in March and conversion to the Morrisons format is expected to take three months.

Mr Philips said: “These additional stores are an important next step in Morrisons’ growth.

“We are building on our strategy to bring Morrisons’ unique offer of freshly prepared, affordable food to more people in Britain.

“These stores will fit very well into our portfolio of 437 existing stores. The additional selling space is incremental to the 500,000 sq ft target already outlined for 2011-12. We look forward to welcoming the new colleagues employed at the Netto stores as they transfer to Morrisons under TUPE regulations.”

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