THE Co-op has run foul of competition law and is being forced to sell its recently-acquired Lydney Somerfield store to "another food retailer".
The same problem has hit other Co-op/Somerfield merger stores in other parts of the country and food group J Sainsbury has stepped in in some cases.
Ross-on-Wye's Somerfield was one of 24 stores acquired by Sainsbury this week and will be closing for a period of refurbishment and rebranding before opening as Sainsbury's later this year. Caldicot's Somerfield has been sold to Waitrose.
A Sainsbury's spokesman said the group were not currently in talks with the Co-operative Group about buying up more stores.
The Co-op/Somerfield merger is expected to take up to two years.
A spokeswoman for the Co-operative Group said: "The Co-operative Group is addressing local competition issues identified by the Office of Fair Trading in a small number of locations arising from the group's proposed acquisition of Somerfield.
"To meet the requirements of the OFT, either a Somerfield store or a Co-operative Group store in these locations will need to be sold as a going concern to another food retailer.
"The OFT has identified Lydney and Coleford as an area of competition concern. However, as the Co-operative store in Lydney is owned by a different co-operative society, it will be necessary for the Somerfield store to be sold to another food retailer as a going concern.
"Staff terms and conditions will be maintained by employment legislation. Staff at Somerfield have been briefed."