R4today sainsburys asda — Miles King MilesKing10 April 30, Supermarkets already have far too much power over farmers and other suppliers.
The details of the merger will be spelled out in a Stock Exchange announcement on Monday morning but analysts have already spent the weekend crunching the numbers after the news leaked out on a grey Saturday afternoon.
The plan is to retain both retail brands because they have different heartlands and attract different sorts of shoppers. To stay afloat, businesses must lower their prices, keep loyalty, improve convenience and innovate to better attract and retain their customers. Meanwhile in Flint the stores are literally side by side on the retail park.
However, this could have more widespread implications for shop prices if discounters Aldi and Lidl decide to cut their prices even further to stay ahead of their main-market rivals. These factors could convince the watchdog that healthy competition will remain even after the two retail giants join forces.
The obvious solution is to grow their customer base and revenues, while cutting their margins, through merging. Both businesses suffer from a legacy of large out of town stores, Asda stores supermarket giants are less popular with consumers. These discussions can last for a number of weeks.
Then there is the growing threat of Amazon, which bought Whole Foods last year and is working with supermarket Morrisons to deliver in parts of the UK. The new company - which brings together the second and third biggest supermarket chains in the UK - will own more than 2, stores.
This should not spark concerns about jobs losses as the companies have made clear that any disposal of sites will be as "trading entities" - although this will obviously depend on rivals wanting to take them off their hands.
Customers, however, are likely to benefit from this and see lower prices, more choice and improvements both in store and online.
The merger would give the group more than 2, stores. It is envisaged that his opposite number at Asda, Roger Burnley, will report to Coupe.
It may well come with demands to close stores. Because of the size of the two supermarkets, the merger requires regulatory approval from the Competition and Markets Authority CMA. Read More Iceland to open supermarket on Rhyl retail park The only nearby supermarket is an Aldi store meaning that between them they have a significant proportion of the grocery trade in the immediate area and could be a concern when the merger deal is reviewed.
In turn, Asda, which is also big in non-food products, will play host to Argos concessions in its stores. Last time they made it very clear that the big four [supermarkets] could not become three. Like any merger and acquisition, this will bring strength to the balance sheet through capitalising on the strengths of both businesses.
Meanwhile, Walmart, which owns Asda, can let go of its interest in the UK market and focus on its base in the US which is facing various challenges.
An expert retail data consultancy believes around 75 stores may have to be sold to make the deal happen. All powerful supermarkets forcing food producers to cut their costs is bad news for farmers, food quality, the environment and workers.
But, together, the two will be the biggest player in the grocery market and the move would mark a significant shift for the supermarket industry, which faces a number of challenges.
All retailers are having to take drastic action to Asda stores supermarket giants competitive during a critical time for the sector. Sign up to the daily Business Today email or follow Guardian Business on Twitter at BusinessDesk Talks between the two businesses have been going on for more than a year, with the deal based on pooling buying power to offer lower prices at the checkout — rather than closing stores or cutting jobs.
Coupe has vast experience in the industry so is well positioned to lead the new supermarket giant. Thank you for your feedback.
This merger is all about market share. The latest merger follows industry trends and is a clear indication that other deals are likely as stores seek to keep up with the market. It put Tesco way ahead of its rivals in terms of revenue and market share and clearly acted as a wake-up call to them.
They both need to up their games to improve their products, online services, and capitalise on how and where people like to shop. It will automatically trigger a competition probe, which history suggests could force store sell-offs in a tough retail climate where there are likely to be fewer buyers than during more buoyant economic times when there was a space race among the big supermarket chains.
This means that suppliers are likely to be effected. Read More Morrisons plans expansion of North Wales supermarket A final decision will depend upon the local market share and how much alternative competition there is in the area.
As in Rhyl it could mean the authority lets the new grocery giant keep both stores.Supermarket giant Asda has announced it is planning to open its 18th store in Northern Ireland, with the creation of jobs in Newtownabbey.
Apr 30, · The fate of thousands of supermarket jobs has been thrown into doubt after details of Sainsbury’s shock £12 billion merger with Asda emerged.
Bosses at the grocery giants initially insisted no. Many shoppers have taken to social media to vent their frustration at the various supermarket giants, including stores in Essex. Sainsbury's in Braintree also had empty shelves (Image: Karen Sadler) Photographs show rows of empty shelves and fridges, as people appear shocked as to what is happening.
Places such as Plymouth, Torquay and Newton Abbot could lose a huge supermarket if the £12billion merger between J Sainsbury and Asda goes ahead, according to new analysis of the deal.
The merger deal values Asda at £ billion The combined business would have total revenues of £51 billion and boast a network of 2, Sainsbury's, Asda and Argos stores.
Sainsbury's boss Mike Coupe, Walmart boss Judith McKenna and Asda boss Roger Burnley (left to right) pose together today as the proposed merger between the supermarket giants was revealed.Download