Supermarket chain Sainsbury’s is to exit the Northern Irish fuel retail market, selling its eight petrol stations there to rapidly expanding operator Go.
Go will transform all of the former Sainsbury’s sites into self-service petrol stations with pay-at-pump terminals, in-line with its standard business model.
The forecourts will be transferred on a site-by-site basis, with the process expected to take between six and 12 months.
No jobs will be lost as a result of the deal, with all Sainsbury’s staff being transferred to roles at nearby supermarkets.
Go is based in Cookstown, County Tyrone and is owned by LCC Group, one of Northern Ireland’s most valuable companies. The family firm began life as a coal merchant and today has interests in that fuel, as well as oil and utilities; it also operates a refinery on the river Foyle in County Londonderry.
Prior to the Sainsbury’s deal Go operated 26 forecourts in Northern Ireland and a further 10 or so in the RepubIic of Ireland, while the company has been expanding into England, opening five unmanned petrol stations in the Liverpool area, with a sixth in planning for Manchester.
Sainsbury’s, meanwhile, entered the Northern Irish supermarket sector in 1996 with a then £100m investment, often opening petrol stations alongside the supermarkets it built there.
While the retailer is exiting the fuel retail market in NI it is looking to expand its grocery operations there, with two new stores set to join its existing portfolio of 12 supermarkets.
Caroline Holroyde, Sainsbury’s director of petrol and kiosk, says the deal with Go “represents a major opportunity to upgrade and modernise these sites”, adding that the forecourts “will continue to operate as normal” as the transfer is prepared.
She adds: “We believe this deal represents the best possible outcome for our petrol station estate in Northern Ireland. We’re looking forward to realising the benefits it represents, while at the same time bringing more of the best Sainsbury’s has to offer to Northern Ireland as we invest in opening two exciting new supermarkets here.”
Go’s new forecourts will be located in West Belfast, Bangor, Ballymena, Coleraine and Dungannon, and at the Forestside, Sprucefield, and Hollywood Exchange retail parks.
