Safeway shoppers' bid thumbs-up

FEWER than 15% of Safeway customers want the supermarkets group to keep its independence, according to new research from the Mintel consumer research organisation.

A survey of just over 1,000 consumers quizzed about the five-way takeover battle for Britain's fourth-largest supermarkets chain revealed that fewer than one in seven wanted their local store to remain a Safeway outlet.

Their top choice to replace Safeway was Wal-Mart-owned Asda, which won 17% of the votes. Tesco came second, although Mintel pointed out that fewer than one in 10 wanted Britain's leading supermarkets group to take over their local Safeway. Sainsbury's followed with 8% of the votes, then Morrisons with 7%.

Richard Caines, retail consultant at Mintel, said: 'Asda was by far the most popular choice among consumers to replace Safeway, reflecting the reputation it has built up nationally for good value for money and a strong non-foods offer.

'It seems that few will mourn the passing of Safeway if its stores are converted to one of the major chains.'

Tesco's appeal was strongest in the 16-24 age range, Asda appealed most to the 25-34 age band. Sainsbury's was liked by the more affluent shoppers, particularly in London and the South-East.

Mintel said its findings also showed that customers put choice ahead of convenience for grocery shopping, and three in four said they liked to shop at the store offering the widest range of goods.

Just over half said they tended to shop at the store nearest to them. Some 85% of those surveyed said they found a store's fresh food stock particularly important in choosing a particular retailer.

All prospective bidders for Safeway, other than retail magnate Philip Green, whose possible purchase of the stores has been cleared, are currently being scrutinised by a Competition Commission inquiry.

The Commission is due to report on its findings next month, and has been keen to hear the views of supermarket shoppers. A final verdict from the Commission may not come until the end of September.

The Mintel survey comes as evidence mounts that the bid battle is affecting Safeway's business. Earlier this week the firm said its underlying sales had dipped, as the distractions of the bid meant the firm was underperforming.

Safeway's management also faced protests at its annual meeting this week over its executive pay structure. Safeway chief executive Carlos Criado-Perez is set for a £1.3m windfall should the supermarket chain change hands.