The transfer will happen over the next six to nine months and a Coles media spokesperson reassured staff that their jobs and entitlements were safe.

“All team members will retain their jobs and their terms of employment,” the spokesperson said.

“These team members have done an admirable job over a number of years and will be retained as skilled retailers.”

Twenty Coles-owned supermarkets will be transferred to FoodWorks by Christmas and a remaining 25 by Easter next year.

Stores will continue to trade and offer the same level of service to the community.

The transfer is part of Coles’ plan to improve its overall network of more than 700 supermarkets and more than 600 Liquorland stores.

FoodWorks views these Coles supermarkets as valuable additions to their existing portfolio of more than 700 stores.

Payment for the stores is about $35 million, including stock, cash and the transfer of employee entitlements.

Wesfarmers Ltd announced this week that it would streamline its under performing Coles chain by selling about 6 per cent of its supermarkets.

FoodWorks chief executive Peter Noble said, although the stores to be sold were not suited to the future of Coles, they were perfectly suited to FoodWorks business model.

Mr Noble said the stores were ideal in size and location to help accelerate FoodWorks’ growth strategy.

FoodWorks will spend millions of dollars adapting the stores to its new ownership.

Its nearest rival is the bigger IGA supermarket chain.