Morrison unloads 12 Safeways on Asda

SUPERMARKETS group Asda is to buy 12 Safeway stores in Northern Ireland from the troubled Wm Morrison group in a deal worth just under £74m. Morrison said the disposals, which are subject to approval from the Office of Fair Trading, are in line with its strategy of concentrating on its mainland UK stores network.

The purchase includes four development agreements. Morrison said completion is expected over a 10-week period starting in September.

While Morrison's woes - and its four profit-warnings - have been well-documented since its £3bn-plus takeover of Safeway, Wal-Mart-owned Asda has also been struggling in recent months.

Latest market share data from TNS showed a further decline in its market share. New chief executive Andy Bond, who took over when Tony DeNunzio quit in a surprise move earlier this year, has admitted that if current trends continue, Asda could be knocked off its current number two spot by Sainsbury's.

Asda leapfrogged Sainsbury's two years ago but the latter has been fighting back under new chief executive Justin King. He has imposed widespread price cuts and improved stock availability.

Sainsbury's sales growth rate is more than double that of Asda - the first time this has happened in a decade.

Tesco remains the clear leader in the supermarkets industry, with the TNS figures last week showing its share of the market had climbed to 30% for the first time.