Marks & Spencer acquires 28 stores from Iceland

Marks & Spencer is buying 28 stores from Iceland for £38m to expand its Simply Food chain.

The deal is expected to complete in March with the stores scheduled to reopen as Simply Food stores between June and August.

According to Marks & Spencer, the 5,000sq ft stores, are all in target locations for the Simply Food brand throughout the UK. Management and sales staff who currently working in these branches will be transferred to Marks & Spencer.

The new Simply Food stores will offer up to 2,000 Marks & Spencer food lines including ready meals, fresh produce, sandwiches, wine, flowers and basic groceries plus a selection of cards and hosiery.

Following the acquisition, Marks & Spencer will have 171 Simply Food stores throughout the UK.

Ian Dyson, finance director, said: "We are delighted to have acquired these sites which will enable us to accelerate the growth of our very popular and profitable Simply Food concept."