Morrisons considers putting more stores on the market

The Bradford-based chain, which acquired the Safeway business earlier this year, pledged to look more closely at the future of the sites after being surprised at the amount of interest. Up to 120 stores could be involved.

The move would be in addition to the 52 shops being sold by Morrisons as part of conditions imposed by competition authorities.

A Morrisons spokesman said: "At the time of the acquisition we said we were surprised by the significant levels of interest shown in the smaller stores. That level of interest has been maintained and we now plan to test its full extent in the market."

The Big Food Group, the Co-op and Waitrose owner John Lewis, which has already bought some Safeway stores, are among chains likely to be interested in the outlets, which are expected to be sold in blocks.

Morrisons is understood to have sent details of the sites, which are all under 15,000sq ft, to potential bidders.

It has started the Safeway integration process by converting larger outlets to its own brand.

But recent industry figures highlighted the challenge facing Morrisons as Safeway sales remained under pressure.

Executive chairman Sir Kenneth Morrison offered shareholders some encouragement recently, however, when he said that sales at stores that had been converted had been strong.

About 50 of the larger Safeway stores are likely to be given the Morrisons brand by the end of the year, part of a three-year process to overhaul the former company's 427-store estate.

* Asda is creating more than 570 jobs through an expansion of its in-store jewellery, photographic and optical departments.

About 320 jobs will be created with the opening of 40 Photo Centres.

The centres offer digital and standard photo processing, cameras and accessories.

A further 174 jobs will be generated with 29 jewellery departments.

The opening of 11 more optical departments, providing a range of services from contact lens fitting to eye tests, will create 77 jobs.