Shoppers fear Safeway sale will destroy choice

Shoppers want a choice of four big supermarkets, not three, exclusive Retail Week research has revealed.

The first survey of consumer attitudes to the battle for Safeway, conducted by pollsters ICM, reveals that 39 per cent think it would be a bad thing if a takeover led to less choice of supermarkets.

Only 13 per cent welcomed the prospect, which indicates that a takeover of Safeway by one of the big three chains is unpopular.

But shoppers are relaxed about the effect grocery consolidation would have on prices - 30 per cent thought prices would fall a little or a lot if Safeway is taken over, while 45 per cent thought prices would stay more or less the same.

In the event that Safeway loses its independence, Morrisons is by far and away the most popular bidder - 42 per cent think takeover by the northern grocer would be a good thing.

Bids from financial buyer KKR and - more surprisingly - Marks & Spencer would be unpopular with the public. They received only 7 per cent and 26 per cent support, respectively. And 43 per cent opposed a takeover by KKR, a far higher figure than for any other potential buyer.

Only 12 per cent believed Morrisons' ownership would be a bad thing, in contrast to 31 per cent against Tesco, 33 per cent against Sainsbury's and 35 per cent opposed to Asda.

The OFT is deliberating on the potential bids for Safeway. A spokesman said the organisation would be interested in receiving the research.

- ICM poll: page 5.