Safeways may bid for Wellworths

SAFEWAYS, the British retail supermarket chain, is considering making a bid to acquire the Wellworths chain in the North, according…

SAFEWAYS, the British retail supermarket chain, is considering making a bid to acquire the Wellworths chain in the North, according to industry sources.

Wellworths is owned by Fitzwilton, the industrial holding company in which Dr Tony O'Reilly and his family have a stake of almost 15 per cent.

Wellworths has 39 shops, two of which are in the Republic. It is a consistently strong performer in the Fitzwilton group. Sales at Wellworths grew by almost 10 per cent in the first six months of 1996, compared to the same period in 1995.

The supermarket chain also showed some improvement in profit margins, which are said to be running at about 7 per cent.

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A spokesman for Fitzwilton said last night it was not company policy to comment on speculation".

The British retail chains have been eyeing the North for expansion. Profit margins in Britain are extremely tight and the supermarket business is highly competitive.

In December, Sainsbury opened its first store in the North at Ballymena, Co Antrim. It employs 300 full- and part-time staff. Sainsbury is also planning to build a supermarket in Newry as well as several others.

The previous month Tesco opened a 13,000 sq ft Metro supermarket in Royal Avenue in Belfast city centre. Tesco also plans to open stores in Lisburn and east Belfast.

Tesco's name has been linked with attempts to buy Stewarts, another NI supermarket chain.

Analysts say it is the most logical route for the British chains to take, because proposals to build stores, such as several of those by Sainsbury's have run into local opposition.