ASSOCIATED British Foods has decided to forge closer links between its supermarket operations in the Republic and Northern Ireland, with administrative and financial functions at Stewarts in the North being integrated with the head office functions of Power Supermarkets, the holding company for Quinnsworth and Crazy Prices in the Republic.

This shift in some of Stewart's head office functions to Power will be implemented gradually during the year and will result in the loss of 87 jobs in Belfast. The impact on employment at the Power Supermarkets head office in Dun Laoghaire has not been disclosed. Stewarts has said, however, that the opening, of new stores in Northern Ireland will create 218 new jobs.

Stewarts managing director Mr Malcolm Lynch said "The impact of the many competitive developments and the nature of the market - has necessitated the strictest possible application of cost effective management to enable the Stewarts/Prices group to remain price competitive and profitable".

Mr Lynch said Stewarts had been reassessing its operations and cost structures, had closed some smaller stores but refurbished and extended other stores. "Operating and marketing practices have been adapted to meet the needs of the evolving situation," he added.

As part of the move to more co effectiveness, Mr Lynch said a decision had been taken to maximise resources within the ABF organisation in Ireland. The move of some head office functions to Power "will give us early access to improved information systems and save additional capital expenditure on technology".

He added that Stewarts is planning a number of new stores and expansions and these would offer the prospect of additional jobs in excess of the jobs cuts at the head office. "The company is now awaiting the outcome of the public inquiries on planning applications. Depending on the results, the clarification will then allow us to consider the implementation of that programme and plan for the continuing future".

The decision by ABF to centralised Stewarts's financial and administrative functions in Power Supermarkets is seen as a reflection of the increasingly competitive nature of the retail market in Northern Ireland. The arrival of Sainsbury and Tesco and the continued expansion by the Fitzwilton owned Wellworths has put more pressure on retailers margins.