Convenience chain Mill Group looks to continue growth surge

Nov 26 2009 by Peter McCusker, The Journal

CONVENIENCE shop chain Mill Group has kicked off a major national expansion drive and a move into running bigger stores with the purchase of five supermarkets.

The Tyneside company says its first move into larger outlets will boost sales in its existing stores, immediately add over £20m to its annual turnover and prepare the way for possible greenfield supermarket developments.

The move boosts its portfolio of stores to 82, staff numbers by 300 to 1,600 and raises annual turnover to £165m.

And the company believes it can push annual sales to more than £50m in the next few years as sales grow and it extends its chain further.

Managing director Nigel Mills said: “We have added 11 stores this year and there will be three further supermarket acquisitions next year. From 2011 we will be looking to open five to ten new stores every year.”

The five former Somerfield stores it has purchased consist of one in Hetton-le-Hole and four in the Yorkshire area, all come in at around 7,000 sq ft, compared to the group’s convenience stores of around 1,500 sq ft.