Store-sector newcomer launching in region

It will be the 23rd opening for Haldanes Stores, which is headed by Yorkshireman Arthur Harris, who wants to create a chain of 50 shops.

The store in Hemsworth, near Pontefract, ceases trading as Somerfield tomorrow and reopens with 35 staff on Saturday after refurbishment and rebranding.

Haldanes, which currently has seven stores in England and 15 in Scotland, is looking for new sites as it aims to become a 100m business.

Mr Harris said: "We are in preliminary discussions with other supermarket operators around the country for possible acquisitions."

He added: "This deal is great news for Hemsworth because it guarantees the future of the store and will give people in the community a refreshing new shopping experience.

"Customer reaction at the other shops we have up and running has been one of surprise at our pricing policy because the perception of a new brand is that prices go up. Haldanes is living proof that this does not have to be the case."

The business was formed after the Co-operative Group agreed with the Office of Fair Trading to offload 133 outlets following its acquisition of Somerfield.

It is the first mid-sized supermarket chain to open for business in the UK for 27 years, said a company spokesman.

Branded "Refreshingly Local", a key policy of the chain is to source more than a third – 35 per cent – of its products and produce from local producers.

Mr Harris said: "We wish to get back to the days when the local store was at the hub of community life."

Scunthorpe-based Nisa-Today's is main supplier for the chain.

Mr Harris and Graeme Hay, the chief executive, are the main shareholders in the Lincolnshire-based group, which launched in November.

Mr Harris added: "This is an exciting project, not just for those of us involved but for business generally at a time when all we've been hearing over the last year and more are dire tales of closures, job losses, stagnant growth and doom and disaster."