Shoprite has been operating on the Isle of Man for more than 50 years and Tesco has said it will give a new look to all the nine stores in the next nine months.
The majority shareholders of Shoprite, Deryck and Kevin Nicholson thanked their “loyal” staff and said the sale had been a “carefully considered” decision.
Tesco boss Jason Tarry said the firm was committed to delivering “fantastic value” to shoppers on the island.
Tarry added Shoprite had “built a fantastic business over many years” and he was “really pleased that we’ve reached this agreement”.
Shoprite, which first opened in 1972, is one of the island’s main employers and sells a mix of Sainsbury’s products as well as fresh produce from Robinson’s, a local business.
Enterprise Minister Tim Johnston, responding to the announcement, said he understood there would be “a number of staff at risk outside the stores”.
He added: “Whilst any announcements that result in job reductions are never welcome, I am heartened by the commitment from Tesco to retain the majority of staff in the immediate term and invest heavily in the existing store network over the next 12 months.”
Chief Minister Alfred Cannan said: “For many years the Shoprite brand has supported the growth of many local food producers by stocking their product lines, from locally produced meat, fish and vegetables, to ales, wines and spirits across over 150 local suppliers.
“I am keen to see a similar local business partnership continue as Tesco takes over.”
Shoprite has stores all around the island, including Castletown, Port Erin, Ramsey and Peel.
Before the sale, Tesco only had one store on the island, in the capital Douglas, which opened in 2000.
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