Argyll Foods plc was the fourth biggest

supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...

operator in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

, through its acquisitions of a number of smaller supermarkets. In 1987 the company acquired Safeway Inc.'s UK subsidiary and in 1996 it changed its name to Safeway plc.

History

Early years

The company was founded as ''James Gulliver Associates'' in 1977 by James Gulliver, a former

Fine Fare Fine Fare was a chain of supermarkets in the United Kingdom. Their Yellow Pack budget private label, own-label range, introduced in 1980, was the first Value brands in the United Kingdom, own brand basic ranges to be introduced in the UK. His ...

Chief Executive A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...

Alistair Grant Sir Matthew Alistair Grant (6 March 1937 – 22 January 2001) was a British businessman. Life He was born in Haddington, East Lothian, the eldest of six children. His father was an RAF PE instructor and was initially educated at Knox Academy. ...

, a

marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

specialist and David Webster, a

merchant bank A merchant bank is historically a bank dealing in commercial loans and investment. In modern British usage it is the same as an investment bank. Merchant banks were the first modern banks and evolved from medieval merchants who traded in commodi ...

er. The founders acquired two food businesses, Morgan Edwards, a business owning the Supervalu chain of foodstores, and Louis C. Edwards, a meat business in

Manchester Manchester () is a city in Greater Manchester, England. It had a population of 552,000 in 2021. It is bordered by the Cheshire Plain to the south, the Pennines to the north and east, and the neighbouring city of Salford to the west. The t ...

,Brian Basha
Obituary: James Gulliver
''The Independent'', 23 September 1996 integrated them and then, in 1980, adopted the name Argyll Foods after Gulliver's place of birth. In 1981 the company bought Oriel Foods, a food manufacturing and wholesaling business which the founders had briefly owned previously in the 1970s before they sold it to

RCA Corporation The RCA Corporation was a major American electronics company, which was founded as the Radio Corporation of America in 1919. It was initially a patent trust owned by General Electric (GE), Westinghouse, AT&T Corporation and United Fruit Comp ...

and which owned Lo-Cost Discount Stores. Also in 1981 the company made a £91m hostile bid for Linfood Holdings, a wholesaling and retailing group which was substantially bigger than itself and owned Gateway Foodmarkets: however the bid was referred to the

Monopolies Commission The Competition Commission was a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under competition law in the United Kingdom. It was a competition regulator under t ...

and did not proceed.

Presto and other acquisitions

The company went on to buy

Allied Suppliers Home and Colonial Stores was once one of the United Kingdom's largest retail chains. Its formation of a vast chain of retail stores in the late 1920s is seen as the first step in the development of a UK food retail market dominated by a small num ...

from

Cavenham Foods Cavenham Foods was one of the United Kingdom's largest food processing businesses. History The company was founded by Sir James Goldsmith in 1965 when he bought up a series of bakeries. In 1971 Cavenham acquired the Bovril Company but then sold ...

in 1982: this brought with it the Presto,

Liptons Lipton is a British brand of tea, owned by Ekaterra. Lipton was also a supermarket chain in the United Kingdom, later sold to Argyll Foods, after which the company sold only tea. The company is named after its founder, Sir Thomas Lipton, who f ...

, Galbraith and R & J Templeton chains. The company had become the fourth biggest supermarket with 923 stores. In 1984 Argyll acquired the

Thornaby Thornaby-on-Tees, commonly referred to as Thornaby, is a town and Civil parishes in England, civil parish on the River Tees's southern bank. It is in the Borough of Stockton-on-Tees, North Yorkshire, England. The parish had a population of 24,74 ...

-based Amos Hinton plc which operated 55 supermarkets under the Hintons name in the

North East of England North East England is one of nine official regions of England at the first level of ITL for statistical purposes. The region has three current administrative levels below the region level in the region; combined authority, unitary authority ...

Cumbria Cumbria ( ) is a ceremonial and non-metropolitan county in North West England, bordering Scotland. The county and Cumbria County Council, its local government, came into existence in 1974 after the passage of the Local Government Act 1972. Cumb ...

and

Yorkshire Yorkshire ( ; abbreviated Yorks), formally known as the County of York, is a Historic counties of England, historic county in northern England and by far the largest in the United Kingdom. Because of its large area in comparison with other Eng ...

. In 1985 Presto became Argyll's principal name for all larger stores as well as smaller stores in the North of England and Scotland. The Lo-Cost banner was used in the rest of England and in Wales on the smaller stores: a new Presto logo was launched and plans made for new Presto regional distribution centres in

Bristol Bristol () is a city, ceremonial county and unitary authority in England. Situated on the River Avon, it is bordered by the ceremonial counties of Gloucestershire to the north and Somerset to the south. Bristol is the most populous city in ...

Wakefield Wakefield is a cathedral city in West Yorkshire, England located on the River Calder. The city had a population of 99,251 in the 2011 census.https://www.nomisweb.co.uk/census/2011/ks101ew Census 2011 table KS101EW Usual resident population, ...

Bathgate Bathgate ( sco, Bathket or , gd, Both Chèit) is a town in West Lothian, Scotland, west of Livingston and adjacent to the M8 motorway. Nearby towns are Armadale, Blackburn, Linlithgow, Livingston, West Calder and Whitburn. Situated sout ...

and

Welwyn Garden City Welwyn Garden City ( ) is a town in Hertfordshire, England, north of London. It was the second garden city in England (founded 1920) and one of the first new towns (designated 1948). It is unique in being both a garden city and a new town and ...

. In 1986 Argyll hoped to buy Distillers plc but were hindered by the infamous

Guinness share-trading fraud The Guinness share-trading fraud was a major business scandal of the 1980s. It involved the manipulation of the London stock market to inflate the price of Guinness shares to thereby assist Guinness's £4 billion takeover bid for the Scottish dr ...

Safeway acquisition

Argyll and

Safeway Safeway is an American supermarket chain founded by Marion Barton Skaggs in April 1915 in American Falls, Idaho. The chain provides grocery items, food and general merchandise and features a variety of specialty departments, such as bakery, d ...

merged in 1987 when

Safeway Inc. Safeway is an American supermarket chain founded by Marion Barton Skaggs in April 1915 in American Falls, Idaho. The chain provides grocery items, food and general merchandise and features a variety of specialty departments, such as bakery, d ...

's United Kingdom subsidiary, Safeway Food Stores as it was then known, was put up for sale. Argyll eventually secured it for the sum of £681m, with £600m raised through a

rights issue A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it can be ...

that was three times over-subscribed. The merger of Argyll and Safeway was hailed by commentators as one of the most successfully integrated retail combinations in the UK, bringing together Argyll's experienced management team with a strong but somewhat under-developed retail brand. The acquisition brought with it 133 UK stores of Safeway, Inc. the first of which had been opened in 1962. In July 1996 Argyll conducted a

share buyback Share repurchase, also known as share buyback or stock buyback, is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way (relative to dividends) of returning money to shareholders. When used in coor ...

and then renamed itself Safeway plc.

References

External links

Funding Universe
{{Authority control Retail companies established in 1977 Companies formerly listed on the London Stock Exchange Defunct retail companies of the United Kingdom Supermarkets of the United Kingdom