Top retailers have this week raised the spectre of the Safeway doomsday scenario becoming a reality - with Morrisons deciding to walk away from a deal and no other bidders coming into play.

Speaking at the IGD annual convention, John von Spreckelsen, chairman of Somerfield, said: “There is still a probability that nothing is going to happen. You can’t rule that out.”

And Justin King, food business unit director of Marks & Spencer, said: “We are only at the half way stage in this process.”

He reminded delegates that only 53 stores were available for the big three to buy, following the Competition Commission ruling.

And if Sir Ken Morrison did acquire Safeway and decided to slim down the portfolio, the big three could not bid for any other stores.

Many commentators believe this lack of flexibility is one reason why Morrisons has still to signal whether it will come back with a new offer. For his part, Sir Ken would not be drawn. “We have chosen to remain silent,” he told The Grocer this week.

But entrepreneur Philip Green was more forthcoming. He was the only potential bidder cleared immediately to bid for Safeway and is believed to be waiting to see what price Morrisons will table.

However, Green said he would only acquire another retail business if the price, product and people were right. “All the fundamentals have to be absolutely right,” he said.

Speaking at a retail forum organised by Barclays, Green said he ran clothing chains Bhs and Arcadia as independent businesses and would “never jeopardise these to take an unnecessary risk”.

He added that food retailing sector was tough to crack. “It is a monopoly, it is difficult to get in,” he said. “The supermarket ruling is relevant to the whole UK marketplace. The fundamentals of the UK market are pretty much set. It is now down to how good product and customer service are.”

Topics