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Fourth food force
"We promised that this merger would create a major fourth force in UK food retailing," said Sir Kenneth Morrison, chairman of the chain.
MORE THAN a year after announcing a £3bn bid for the Safeway supermarket chain, UK retailer Morrisons has announced that the acquisition is complete.
"We promised that this merger would create a major fourth force in UK food retailing," said Sir Kenneth Morrison, chairman of the chain. "We must now focus all our energy and the very considerable talents of all our employees on delivering that promise.
We have detailed integration plans and I remain very confident that we can put these plans in place quickly and effectively." A conversion plan will get under way in August, focusing on Safeway’s larger stores, while 138 of the smaller stores will be converted to a convenience format and will trade under the Safeway Compact banner.
Morrisons has also announced plans to cut Safeway prices by 6% over the coming months, which some industry watchers say could spark a price war among the UK supermarkets.
What this will mean for the drinks industry remains to be seen, but if Sir Ken’s ambitions for a fourth major multiple are anywhere near realised, it will be well worth watching this particular retailer over the next few months.