The supermarkets' move into general merchandise played a role in accelerating Woolworths' downfall. They are also sure to play a big part in what happens next.
Today's Retail Week reveals that Tesco is interested in as many as 20 more Woolworths stores, in addition to the nine it acquired before the administration.
Waitrose has already taken four, and reports today suggest Asda and Iceland also want some, although Asda sources played this prospect down earlier in the week, pointing out that it has closed its in-town George stores. The hard discounters Aldi and Lidl will inevitably be sniffing around as they accelerate their rush for space.
The stores won't be for everyone. Morrisons is unlikely to be a big player in the break-up, as the stores don't generally suit its format, and Sainsbury's, although keen to expand its convenience offering, has yet to show its hand.
The Woolworths store portfolio is disadvantaged in that it has received a lack of investment for years. I understand the reopening of the store in Islington as a Waitrose has been delayed by months because of the poor condition of the store. Technical issues such as installing sufficient power for refrigeration are likely to complicate conversions.
But fundamentally it represents a one-off opportunity for the grocers to get hold of stores with significant floorplates in town centre locations, generally without planning complications. Many are at the centre of their towns - often affluent market towns where decent-sized stores are in short supply.
Many aren't, of course, and there will be a pretty unappealing rump that the discount general merchandisers will be likely to mop up. But even so, and even with the retail market being weak, the Woolworths' collapse represents a golden opportunity for retailers that are keen and able to expand. Right now, that means the supermarkets.
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