Shoprite sells all nine stores to Tesco 

Stores to be rebranded over the next nine months

Shoprite has sold its nine stores on the Isle of Man to Tesco.

This includes its larger stores, its 'Little Shoprite' stores and Winerite on Victoria Road in Douglas.

The stores will remain trading as Shoprite during a transition period and will be rebranded to Tesco over the next nine months.

Shoprite has confirmed store employees will be transferred, to become colleagues of Tesco.

However, it's understood there are a number of staff at risk outside the stores.

Manx Radio has contacted Robinson's, who say they will not comment at this time.

Deryck and Kevin Nicholson, who own the majority stake in the brand said: "We have carefully considered this decision and are pleased to pass our business on to an established brand in Tesco, which already has a presence on the Isle of Man.

“We wish to express our gratitude for the loyal support of our staff, suppliers and customers and we would like to sincerely thank them for being part of our journey for more than 50 years.

“We believe these stores will continue to thrive and deliver a fantastic service for customers on the Isle of Man. We look forward to continuing our work well into next year as part of a transition period.”

Jason Tarry, Tesco UK CEO, added: “I am really pleased that we’ve reached this agreement with Shoprite. Deryck and Kevin Nicholson and the team at Shoprite have built a fantastic business over many years and we look forward to welcoming Shoprite’s store colleagues and customers to Tesco.

“It’s particularly important that we are able to deliver great value for customers on the island. For that reason, we will be linking prices locally with those in the UK*. Our priority is to deliver for Manx customers the fantastic value that we deliver for all of our customers.

“We will now be engaging with suppliers and the wider community in the Isle of Man, many of whom we know well as Tesco has been operating locally for 23 years.”

In response, Chief Minister, Alfred Cannan says while he's saddened by the news, he welcomes the long term commitment and investment from Tesco into the Isle of Man’s retail sector.

He said: "I understand that for many years the Shoprite brand has supported the growth of many local food producers by stocking their product lines, from locally produced meat, fish and vegetables, to ales, wines and spirits across over 150 local suppliers. I am keen to see a similar local business partnership continue as Tesco takes over, and have expressed our desire to work with Tesco to sustain this commitment to supporting local producers.

‘The Isle of Man’s retail sector is essential to our Island, and this announcement will mean our community is able to continue to access multi-national brands as well as independent retailers to provide our community with a high-level of service and diverse range of options."

Tim Johnston MHK, Minister for Enterprise, commented: "Today’s announcement maintains a level of security and stability for the substantial footprint Shoprite holds across the Island’s retail sector, and will bring a highly valued brand to a wider audience across the whole Island. While I too am disappointed by the loss of the historic and well-regarded local brand, I understand the family’s desire to sell the business and welcome Tesco’s appetite to expand their reach into the Island.

‘Shoprite set an example within the sector of putting local suppliers first, and through the Business Agency the Department is keen to work with the Department of the Environment, Food and Agriculture, Tesco and our local food and drink community to maintain this important commercial relationship.

‘We were briefed by Shoprite ahead of the sale, and understand there are a number of staff at risk outside the stores, and whilst any announcements that result in job reductions are never welcome, I am heartened by the commitment from Tesco to retain the majority of staff in the immediate term and invest heavily in the existing store network over the next 12 months. Business Isle of Man will work closely with both Tesco and Shoprite over coming weeks and months, ensuring that support is available to both business and any impacted staff.

‘The nature of a strong economy means skilled workers are in high demand. Therefore it is hoped that any individuals ultimately affected will have a number of opportunities elsewhere on the Island."

Business Isle of Man maintains regular dialogue with businesses operating in the retail and food production sectors.

If any businesses are worried about the impact of this announcement on their operations, please contact contact-business@gov.im