by Linda Welch
The Argyll Group plan to more than double the number of Safeway stores in the UK to over 350 by 1990 as part of a massive expansion drive which will involve opening 20 to 25 new stores every year and developing three brand new distribution centres.
Since Argyll’s £681m acquisition of Safeway last February, integration of the 148 existing Safeway stores already open or under construction with 160 of the larger Presto stores has progressed.
Argyll have now launched an expansion programme, called “Safeway 1990”, which will lead to the creation of over 18,000 jobs nationwide.
Safeway are already on target to open 16 more new stores this year, ranging from Colwyn Bay (opening June 2) to Worthing (opening in December). A further 19 are already projected for 1988 and three for 1989.
The stores will range in size from 14,500 sq ft in Swindon (due to open in December 1987) to 50,000 sq ft in Sutton (projected opening in 1988).
The new distribution centres will be in Scotland, the Midlands and the South. Further details will be announced once terms have been agreed. In addition to the new facilities, Argyll will be extending four of its existing distribution centres.
Meanwhile, the battle between Tesco and Asda for top place in the store hierarchy has become more heated. Prior to Tesco’s takeover of Hillards, only one store separated the two retailers at the top of the Unit for Retail Planning Information’s List of UK Hypermarkets and Superstores.
But Tesco have now taken a commanding lead and have a total of 125 stores existing or with planning permission. Asda have a combined total of 108 stores.
Despite a number of acquisitions during 1985 and 1986, the Dee Corporation remains in third place, some way behind the two leaders with 65 stores open and only two more with planning consent.
