City File: Chain reaction

ARGYLL has been worse hit than other food retailers by the threat from discounters, its shares falling to 300p from 423p at the end of 1992. Yet, alone among the big four supermarket chains, it has a substantial and growing discount operation; and the Safeway chain itself, with possibly the best name in the sector, has more room for expansion than its rivals.

Tony MacNeary of NatWest Securities reckons next week's figures could show earnings rising more than a tenth to put the shares on an undemanding earnings multiple of little more than 10. Hang on.