THE Co-operative Society has continued its run of retailing acquisitions with the £30m purchase of the Balfour chain of convenience stores from venture capital firm 3i.

The deal includes 76 convenience stores and 35 newsagents, taking the Co-op's number of outlets to 1,829, and adding 126,000sq ft of selling space in southern England, including London.

The Co-op's £133m acquisition of the 630-store Alldays chain in October saw the mutual society become the UK's biggest convenience store operator. It also has 500 supermarkets.

Martin Beaumont, Co-op chief executive, said: "We needed to continue to build our presence in the South and add to the momentum building behind our convenience proposition.

"After integration and conversion to the Co-op Welcome brand, we will generate a significant uplift in sales and profits."

Balfour, owned jointly by 3i and the chain's senior management, reported profits last year of £1.4m on a turnover of £67m.

The Co-op plans to invest £16m in converting the stores to its Welcome convenience format which was trailed in ten of the former Alldays stores.

Former Alldays are being converted to Co-ops at the rate of three a week, and refitted stores have seen sales increase by around 30 per cent.

Julian Davison, 3i director, said: "Balfour has developed into a highly successful southern-based chain of convenience stores during 3i's period of ownership.

"The Co-operative Group has beaten off strong competition to acquire the business at a time when there is a great deal of activity in this sector."