Fewer than 100 shops will close as a result of the Thomas Cook and Co-operative Travel retail merger.
Co-operative Group chief executive Peter Marks confirmed: “There will be rationalisation of the combined shop network, but it isn’t going to be big.”
He said: “Thomas Cook and the Co-operative Travel are two brands which sit well next to each other on the high street. Thomas Cook is more upmarket and while we’re not completely at the other end, we are more mass market.”
Meanwhile, Thomas Cook chief executive Manny Fontenla-Novoa confirmed that hundreds rather than thousands of jobs would be lost in the merger.
Marks confirmed, however, that Cook’s 70 Going Places branches would be rebranded as Co-ops, if the merger is cleared by competition authorities in December.
“What this merger brings together is the two most trusted brands in travel – and both have loyal customer bases,” Marks said.
He admitted staff at both organisations would be “shell-shocked” at the news, but said: “As soon as it sinks in, they will be excited.
“They all knew that the Co-operative Travel was struggling, so they will soon realise that this move secures the Co-op’s future in travel.
“It’s been a really tough year for travel and while the overall Co-operative posted good results, travel didn’t. But this means we are now going to be in travel for years to come. That’s good news for the staff, and it’s also good for the members and the customers.”
The merger document has confirmed that the Co-op’s travel division was on course to make just £100,000 operating profit to the year to September 20, 2010.
Marks added: “Of the synergies we are creating, some will be passed onto consumers. Scale means more efficiency, stronger profits and better holiday prices.”
Marks confirmed that Ian Derbyshire would become chief executive of the new business, but said: “Mike Greenacre will be staying on as a key part of the management team.”
He added that the Co-op Travel’s financial director would do the same role for the new business, but said it was for Derbyshire to decide on other roles within his team.
He would not be drawn on positions for current distribution director Alistair Rowland or head of retail Trevor Davis.
Marks said: “We have been pursuing a strategy of consolidation. We’ve done the same in food by merging with Somerfield and financial services by merging with Britannia. We are now doing the same for the travel business.”