Editing Morrisons (section)

===Safeway===
[[File:Morrisons, Kilmarnock.jpg|thumb|right|Morrisons expansion into Scotland following acquisition of Safeway led to the first Scottish store opening in [[Kilmarnock]] in 2004]]

In March 2004, Morrisons acquired [[Safeway (UK)|Safeway]], a British supermarket chain which owned 479 stores, giving Morrisons a larger presence in southern England.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/3542291.stm|title=Morrisons seals Safeway takeover|work=BBC News|date=8 March 2004|access-date=12 March 2011}}</ref> The company was purchased for £3.3&nbsp;billion, comprising 1 new Morrisons share (enabling Safeway shareholders to have a 50% stake in the enlarged group and reducing the Morrison family's shareholding to 18%), plus 60 pence in cash (paid for by the divestment of 52 overlapping stores) for each Safeway share held. The acquisition quickly ran into difficulties caused in part by changing the accounting systems six weeks before the transaction was completed,<ref>{{cite news|first1=Sarah|last1=Ryle|first2=Richard|last2=Wachman|url=https://www.theguardian.com/business/2005/mar/20/supermarkets.theobserver|title=Morrisons faces investor revolt|work=The Guardian|location=London|date=20 March 2005|access-date=12 March 2011}}</ref> leading to a series of profit warnings being issued by Morrisons, poor financial results<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/4359208.stm|title=Morrisons plunge deep into the red|work=BBC News|date=20 October 2005|access-date=12 March 2011}}</ref> and a reversion to manual systems.<ref>{{cite web|url=http://www.computing.co.uk/computing/news/2141248/morrisons-faces-strike-action|title=Morrisons face strike action over supply chain IT|date=17 August 2005 |publisher=Computing.co.uk|access-date=12 March 2011}}</ref>

The programme of store conversions from Safeway to Morrisons was the largest of its kind in British retail history, focusing initially on the retained stores which were [[Freehold (real property)|freehold]], over {{convert|25000|sqft|m2|abbr=on}} with separate car parks. Within a few weeks, Safeway carrier bags were replaced by those of Morrisons, and Morrisons own-brand products began to appear in Safeway stores.<ref>{{cite news|url=http://findarticles.com/p/articles/mi_qn4156/is_20030112/ai_n9626929|archive-url=https://web.archive.org/web/20101013074443/http://findarticles.com/p/articles/mi_qn4156/is_20030112/ai_n9626929/|url-status=dead|archive-date=13 October 2010|title=Safeway glamour gives way to Yorkshire Bitter|via=Find Articles|date=12 January 2003|access-date=12 March 2011}}</ref>

Originally 52 shops were to be compulsorily divested after the takeover. Two closed for other reasons, [[John Lewis Partnership]] purchased 19 to be part of its [[Waitrose]] chain,<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/3566925.stm|title=Waitrose snaps up Safeway stores|work=BBC News|date=25 March 2004|access-date=12 March 2011}}</ref> [[J Sainsbury plc]] purchased a further 14,<ref>{{cite news|first=Julia|last=Finch|url=https://www.theguardian.com/business/2004/may/15/supermarkets|title=Struggling Sainsburys buy Safeway stores|work=The Guardian|location=UK|date=15 May 2004|access-date=12 March 2011}}</ref> and Tesco bought 10 in October 2004.<ref name="UK Business Park">{{cite web|url=http://www.ukbusinesspark.co.uk/mos92303.htm|title=UK Business Park|publisher=UK Business Park|access-date=12 March 2011|url-status=dead|archive-url=https://web.archive.org/web/20110928044738/http://www.ukbusinesspark.co.uk/mos92303.htm|archive-date=28 September 2011}}</ref> At the time Morrisons chose not to move into the convenience store sector, although it later did so with its [[#Convenience stores|M Local]] stores. In accordance with this policy decision, 114 smaller 'Safeway Compact' stores were sold to rival supermarket chain [[Somerfield]] in 2004 in a two-part deal worth £260.2&nbsp;million.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/3950219.stm|title=Morrisons sells 114 Safeway shops|work=BBC News|date=25 October 2004|access-date=12 March 2011}}</ref>

In 2004, the first Morrisons store in Scotland was officially opened in [[Kilmarnock]].<ref>{{cite web |last1=PLC |first1=Morrisons |title=Company History - Morrisons Corporate |url=https://www.morrisons-corporate.com/about-us/company-history/ |website=Morrisons |access-date=10 January 2025}}</ref> In [[Northern Ireland]] Morrisons sold the [[Safeway Stores (Ireland)|Safeway stores]], and a store in [[Bangor, County Down|Bangor]] that opened after the Morrisons takeover, to Asda.<ref>{{cite news|first=Mark|last=Tran|url=https://www.theguardian.com/business/2005/jun/06/supermarkets.asda|title=Asda moves into Northern Ireland|work=The Guardian|location=London|date=6 June 2005|access-date=12 March 2011}}</ref> Waitrose purchased five stores in 2005,<ref>{{cite news|first=Simon|last=Bowers|url=https://www.theguardian.com/business/2005/aug/12/supermarkets|title=Waitrose adds 5 more stores to its empire|work=The Guardian|location=London|date=12 August 2005|access-date=12 March 2011}}</ref> followed by six more on 18 July 2006, including the former Safeway store in [[Hexham]], Northumberland, which became England's most northerly Waitrose branch.<ref>{{cite web|url=http://findarticles.com/p/articles/mi_qn4158/is_20060718/ai_n16538251|archive-url=https://web.archive.org/web/20080920114625/http://findarticles.com/p/articles/mi_qn4158/is_20060718/ai_n16538251|url-status=dead|archive-date=20 September 2008|title=Waitrose buys stores from rival Wm Morrisons|newspaper=The Independent|date=18 July 2006}}</ref> In May 2005, Morrisons announced the closure of Safeway and [[BP]] joint venture convenience store/petrol station. Under the deal, the premises had been split 50/50 between the two companies.<ref>{{cite web|url=http://www.ukbusinesspark.co.uk/bpaaaaaa.htm|title=UK Business Park|publisher=UK Business Park|access-date=12 March 2011|url-status=dead|archive-url=https://web.archive.org/web/20110928044801/http://www.ukbusinesspark.co.uk/bpaaaaaa.htm|archive-date=28 September 2011}}</ref>

Morrisons also sold Safeway's [[Channel Islands]] stores, in [[Guernsey]] and [[Jersey]], to [[Sandpiper CI|CI Traders]] where the stores continued to trade as [[Safeway (Channel Islands)|Safeway]], although the products they sold carried the brand names of chains such as [[Iceland (supermarket)|Iceland]].<ref>{{cite web|url=http://www.thisisjersey.com/2005/04/30/ci-traders-buy-safeway/|title=CI Traders buy Safeway|publisher=Thisisjersey.com|date=30 April 2005|access-date=12 March 2011|url-status=usurped|archive-url=https://web.archive.org/web/20110524055034/http://www.thisisjersey.com/2005/04/30/ci-traders-buy-safeway/|archive-date=24 May 2011}}</ref> In 2011, Sandpiper CI/CI Traders sold the Channel Island Safeway stores to Waitrose, and the Safeway brand disappeared from the Channel Islands.<ref>{{cite web|url=http://www.sandpiperci.com/news/sandpiperci-to-sell-its-checkers-and-safeway-supermarkets-to-waitrose|title=SandpiperCI to sell its Checkers and Safeway supermarkets to Waitrose|publisher=sandpiperci.com|access-date=20 March 2015|url-status=dead|archive-url=https://web.archive.org/web/20150121060028/http://www.sandpiperci.com/news/sandpiperci-to-sell-its-checkers-and-safeway-supermarkets-to-waitrose|archive-date=21 January 2015}}</ref> On the [[Isle of Man]], the Douglas store was sold to [[Shoprite (Isle of Man)|Shoprite]] and the Ramsey store was sold to [[The Co-operative Food]].<ref>[https://web.archive.org/web/20160104181203/http://findarticles.com/p/articles/mi_hb5245/is_200504/ai_n19849386 Morrisons pull out of Isle of Man]</ref> The Gibraltar store was originally offered for sale, but was ultimately converted. In November 2006, plans were submitted for the extension and redevelopment of the store to introduce the full Morrisons format.<ref>{{cite web|url=https://friendsofgibraltar.org.uk/|archive-url=https://web.archive.org/web/20090327122401/http://www.foghs.org.uk/nl/78.pdf|url-status=dead|title=Friends of Gibraltar – Bringing Gibraltar's Friends Together!|archive-date=27 March 2009}}</ref>
[[File:MorrisonsConsett.jpg|thumb|Former Safeway store in Consett, County Durham. Since replaced with a new-build store in November 2012]]
In September 2005, the company announced the closure of former Safeway depots in Kent, Bristol and Warrington with the loss of 2,500 jobs.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/england/4249872.stm|title=Morrisons staff announce walkout|work=BBC News|date=15 September 2005|access-date=12 March 2011}}</ref> The Kent depot was later sold to upmarket rival Waitrose, and the Warrington one to frozen food rival Iceland. Part of the Bristol depot was sold to Gist.<ref>{{cite web|url=http://www.dematic.co.uk/presse/_admin/press_uk/DEMUK070201/DEMUK070201_EN.pdf?PHPSESSID=a9afdfd7b88a6fde761356c646dae218|title=Dematic|publisher=Dematic|access-date=12 March 2011}}{{Dead link|date=August 2018|bot=InternetArchiveBot|fix-attempted=yes}}</ref>
The store conversion process was completed on 24 November 2005 when the final Safeway fascia disappeared from the UK.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/4463882.stm|title=Safeway disappears after 43 years|work=BBC News|date=23 November 2005|access-date=12 March 2011}}</ref>