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> Sainsburys & Asda in talks to merge
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Brett-Butler
post Apr 28 2018, 01:18 PM
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Howdy, disco citizens.
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From the BBC:

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Merger talks between British supermarket chains Sainsbury's and Asda are at a reasonably advanced stage, BBC business editor Simon Jack confirmed.

The two brands are expected to be retained should a merger go ahead.

Sainsbury's and Asda - the UK arm of Walmart - are the second and third largest supermarkets in the UK.

The combined group would comprise 2,800 stores and would represent around 30% of the UK grocery market - similar to that of market leader Tesco.

George MacDonald, editor of Retail Week, said the grocery industry had been shaken up by low-cost supermarkets such as Aldi and Lidl.

"So maybe this type of mega deal will get the go ahead by the Competition and Markets Authority," he said.

"This is quite audacious by Sainsbury's - given it has only recently bought Argos. It's symptomatic though of the restructuring of the supermarket industry."


It sounds as if both supermarkets will still retain their branding, so we won't see either Asda or Sainsburys disappearing off the high street, which makes sense, as they do seem to have different markets, with Sainsbury's being seen as slightly more "upmarket". The deal will still have to go through the Competition Commission, so they may have to sell off some of their stores for the deal to go through.
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Suedehead2
post Apr 28 2018, 01:26 PM
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While they say that both brands will stay, I assume it is still possible that some individual branches will change identity. If that means my local Asda becomes a Sainsbury's, I won't be complaining.
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Queef of Peace
post Apr 28 2018, 01:36 PM
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No NO

NOOOOO

Sainsbury's is too EXPENAIBE and Asda CHEAP

THIS IS NOT GOOD FOR HE AVERAGE POCKET
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gooddelta
post Apr 28 2018, 02:11 PM
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I've worked in both in the past, so this is very interesting to me as they were so very different to work for, and indeed to shop in. A completely different culture, feel, type of customer, pricing, everything! I wonder if this would pass competition laws though?
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Rooney
post Apr 28 2018, 02:20 PM
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Obviously if it does go through it will be an aim to win the market off of Tesco (I assume the deal would be for both parties to work together rather than one take sole control). Both have completely different markets so I could not imagine anything changing for the consumer. I suspect if anything it will be Head Office and distribution roles cut.

I suspect this will probably be good news for the consumer and may allow Asda to compete a little more with the discounters.
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vidcapper
post Apr 28 2018, 02:43 PM
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If either of the Cheltenham ones close, I hope it's not Sainsburys, as it's just 2 minutes walk away, whereas Asda is more like 2 miles...
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Suedehead2
post Apr 28 2018, 03:38 PM
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The difference between the two - and the stated intention to maintain both brands - may be enough to satisfy the Competition Commission. I wonder if Asda stores would join Sainsbury's in becoming pick-up points for (Sainsbury's-owned) Argos.
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Rooney
post Apr 28 2018, 04:49 PM
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QUOTE(Suedehead2 @ Apr 28 2018, 04:38 PM) *
The difference between the two - and the stated intention to maintain both brands - may be enough to satisfy the Competition Commission. I wonder if Asda stores would join Sainsbury's in becoming pick-up points for (Sainsbury's-owned) Argos.


I guess that would be the idea, there is huge potential in there to tap in to e-commerce (which is the big thing for retailers & suppliers right now) and then rely on shoppers to make some impulse purchases.
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Martyn
post Apr 28 2018, 09:59 PM
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Their combined market share is still slightly less than Tesco so it shouldn't be an issue for the Competitions Commission. However I can see Tesco objecting to it.
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