SPECULATION is continuing about the future of two North Yorkshire branches of Safeway following a takeover by Morrisons.

The future of the Safeway stores in Harrogate and Ripon is being questioned as both are about a mile from Morrison stores.

The £3.1bn takeover of Safeway by Morrisons is expected to go ahead next month.

If the deal is approved it seems likely that the two North Yorkshire stores would be sold to another supermarket operator in a bid to maintain competition.

Asked about the situation in Harrogate and Ripon a Morrisons spokesman said no final decision had been taken on which stores would be disposed of following the takeover.

Both Safeway stores have been built in recent years - the Safeway town centre store, in Harrogate's Station Parade, and the larger out of town Ripon premises off Harrogate Road.

If, as expected, the takeover deal is completed it would make Morrisons the fourth largest supermarket firm behind Tesco, Asda and Sainsbury.

Already Morrisons has announced it will create 1,000 jobs at a bigger head office in Bradford.