I doubt Sainsburys would be worried, they will have the space in Woolies to have a far wider range of merchandise and they also have a better reputation for quality. There's also the novelty factor, of course, being as the nearest Sainsburys is currently over in Rhyl.
I dont think Tesco were ever seriously interested in Woolies; as I understand it, Poundstretcher were gazumped by Sainsburys there. Tesco were never involved. They have a history of participating in Travelodge developments, so it doesn't come as a great surprise.