One of the Republic's most influential retailers has urged the British competition watchdog to veto any attempts by the UK's 'big three' grocery chains to acquire the Safeway multiple, warning further market consolidation will harm customers and may have ruinous consequences for Irish suppliers.
Should Safeway fall into the hands of Tesco, Asda or Sainsbury, consumers would suffer and and the Irish food industry could find itself forced to drastically cut prices, predicted Mr Seamus Scally, managing director of the Musgrave group.
Tesco and Asda were already securing favourable terms from suppliers, far ahead of those enjoyed by smaller rivals, Mr Scally claimed. "There is a major danger for UK consumers that the sale of Safeway will lead to the chain being carved up by the big three," he told the Checkout retailing conference in Dublin yesterday. "According to the gospel of the big three, this will be good for competition. This is simply nonsense - it is bad for UK consumers and it is very bad for the Irish farmer and the Irish food industry."
Shares in Safeway, which is valued at £1.5 billion (€2.27 billion), have surged amid heightening speculation that one of its rivals will make a takeover bid. Retail tycoon Philip Green is the latest to express an interest and was this week ordered to lodge a formal offer with the British Office of Fair Trading.
Mr Scally called on Musgrave's rivals to publish turnover and profit figures for the Republic, claiming there was a need for greater transparency in the industry. "This... is essential for policymakers, food producers and farmers. Musgrave group has been doing it for years. Others should come clean and publish their numbers. I am at a loss to know why they do not publish audited data," he said
Budgens, the UK chain purchased by Musgrave last July, would increase sales to £1 billion within five years, Mr Scally predicted. The group owns the Republic's largest distribution network for independent retailers and the SuperValu and Centra multiples.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)