SUPERMARKET chain Sainsbury's has increased its presence in the convenience store sector by adding regional operator Jacksons Stores to its group.

The move, which involves 114 neighbourhood shops across Yorkshire and the north Midlands, follows the acquisition of North-East chain Bells Stores earlier this year.

The major supermarkets have been keen to establish a presence in the £23bn convenience store market, which is one of the fastest growing areas of food retail.

As with the Bells deal, Jacksons Stores will be run as a separate business by the current management team, which is based in North Ferriby, East Yorkshire.

Sainsbury's said all 2,350 members of staff would keep their jobs and that it would maintain supply chain arrangements and act as a supplier to the Jacksons' depot.

Jacksons generated turnover of £143m in the year to April 24 and had net assets of £25.5m.

Funding for the move by Sainsbury's comes from the £1.4bn raised by selling its Shaw's supermarket business in the US.

Justin King, chief executive, said that, along with the Bells deal, he believed Sainsbury's would be able to create real scale and expertise in the convenience store sector.

Jacksons, which was founded in 1851 at a grocery store in Hull, was recently voted Britain's best independent retail chain.

Angus Oughtred, managing director, said: "This is in the best long-term interests of Jacksons customers as it will enable us to continue to grow the business, enhancing our offer to local customers as well as retaining our employees under their current employment terms."