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  1. #1
    @hibs.net private member Hibbyradge's Avatar
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    Sainsbury/ASDA merger

    How can they say that there will be no store closures.

    Near me, at Monk's Cross, there's one of each superstores literally across the road from each other.

    I can't believe that they'll allow both to stay open and this can't be the only place in the UK that this situation exists.

    What am I failing to understand?

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  3. #2
    @hibs.net private member Bostonhibby's Avatar
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    Quote Originally Posted by Hibbyradge View Post
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    How can they say that there will be no store closures.

    Near me, at Monk's Cross, there's one of each superstores literally across the road from each other.

    I can't believe that they'll allow both to stay open and this can't be the only place in the UK that this situation exists.

    What am I failing to understand?

    https://www.google.co.uk/maps/place/...3!4d-1.0475998
    Call me a cynic but the guys who stand to make the most from the deal don't want to rock any boats just yet to maximise the return and keep all the customers thinking nothing changes.

    Been there and done it a few times now, there's huge economies of scale to be had here as well as an even bigger stick to beat suppliers with on price so a smaller amount of people stand to gain a lot and there'll be site "mergers" and "headcount savings".

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  4. #3
    @hibs.net private member danhibees1875's Avatar
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    I'm with you, I don't understand that logic either.

    Unless the plan is to make those areas some sort of dual-shop area where one store would have clothes/appliances and another would have just groceries.


    Not convinced that would be a great business plan though.
    Mon the Hibs.

  5. #4
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    It's the modern way. If you've got bad news, just plainly and simply lie.
    It's what our politicians do, so it's no surprise that businesses are blatantly lying too.
    It seems there's no penalty for lying these days.

  6. #5
    @hibs.net private member snooky's Avatar
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    Quote Originally Posted by grunt View Post
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    It's the modern way. If you've got bad news, just plainly and simply lie.
    It's what our politicians do, so it's no surprise that businesses are blatantly lying too.
    It seems there's no penalty for lying these days.
    Yer a liar.

  7. #6
    Scottish Cup Victory - Witness 2016 Scouse Hibby's Avatar
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    Interesting as currently Asda shoppers would scoff at Sainsbury's for being too expensive and Sainsbury shoppers only shop in Asda if they can use Sainsbury bags to hide their shop. Definitely supermarket class division on some scale. Agnes versus Senga 😁

  8. #7
    Quote Originally Posted by Scouse Hibby View Post
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    Interesting as currently Asda shoppers would scoff at Sainsbury's for being too expensive and Sainsbury shoppers only shop in Asda if they can use Sainsbury bags to hide their shop. Definitely supermarket class division on some scale. Agnes versus Senga 😁
    It's going to be a sad day for Sainsbury shoppers when they discover they have been paying 30p more for the same products for 25 years.
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  9. #8
    @hibs.net private member Steve-O's Avatar
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    Quote Originally Posted by Hibbyradge View Post
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    How can they say that there will be no store closures.

    Near me, at Monk's Cross, there's one of each superstores literally across the road from each other.

    I can't believe that they'll allow both to stay open and this can't be the only place in the UK that this situation exists.

    What am I failing to understand?

    https://www.google.co.uk/maps/place/...3!4d-1.0475998
    Different country obviously but there are several sites here in NZ where this sort of thing has happened and both sites have remained open, even with the same name!

    Where I live there are two supermarkets, the same shop, literally a 5 minute walk apart

  10. #9
    Testimonial Due Colr's Avatar
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    Quote Originally Posted by Scouse Hibby View Post
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    Interesting as currently Asda shoppers would scoff at Sainsbury's for being too expensive and Sainsbury shoppers only shop in Asda if they can use Sainsbury bags to hide their shop. Definitely supermarket class division on some scale. Agnes versus Senga 😁
    There was a programme on R4 not so long ago where the Asda chief exec lived on their own brand cheapest products for a week. He concluded that they were utterly disgusting.

    My experience is that Sainsbury's veg rarely make it to the sell by date before going off.

    Match made in heaven!!

  11. #10
    @hibs.net private member lord bunberry's Avatar
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    Theyíre saying it will help them compete with Lidl and Aldi. Iím not sure how thatís going to work. Iím not really a fan of Lidl or Aldi, there ok for some things, but I wouldnít want my local supermarket to become more like them. I agree with others that it will probably be a cost cutting exercise with shops and warehouses closing.

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  12. #11
    @hibs.net private member snooky's Avatar
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    Quote Originally Posted by Scouse Hibby View Post
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    Interesting as currently Asda shoppers would scoff at Sainsbury's for being too expensive and Sainsbury shoppers only shop in Asda if they can use Sainsbury bags to hide their shop. Definitely supermarket class division on some scale. Agnes versus Senga ��
    Maybe Asda should just change their name to Sainsbury and keep the low prices?
    Sorted.

  13. #12
    @hibs.net private member lord bunberry's Avatar
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    Quote Originally Posted by snooky View Post
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    Maybe Asda should just change their name to Sainsbury and keep the low prices?
    Sorted.
    The staff wear maroon in Sainsburyís though. You need to factor that in.

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  14. #13
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    Quote Originally Posted by Hibbyradge View Post
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    How can they say that there will be no store closures.

    Near me, at Monk's Cross, there's one of each superstores literally across the road from each other.

    I can't believe that they'll allow both to stay open and this can't be the only place in the UK that this situation exists.

    What am I failing to understand?

    https://www.google.co.uk/maps/place/...3!4d-1.0475998
    Itís semantics I think.

    Effectively they are saying the financial benefits that they have called out for the larger group do not include any planned store closures. That of course does not preclude any store closures at a future date.

    Then there is the proposal to continue to trade under both brands..therefore technically the Sainsburyís and ASDA brands will still compete with each other but will ultimately have the same parent company.

    Itís not a strategy that appears to have much longevity and smells of being crafted in an attempt to get regulatory approval and avoid negative headlines.

    On the flip side they are suggesting this tie up will lower prices by 10% on a large number of frequently purchased items. A sizeable saving then for the end consumer.

  15. #14
    @hibs.net private member snooky's Avatar
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    Quote Originally Posted by lord bunberry View Post
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    The staff wear maroon in Sainsbury’s though. You need to factor that in.
    Nae probs - Fruit & veggie section wears Asda green. Wine, toilet roll, sections, etc wears Sainsbury maroon.

    Sorted x 2

  16. #15
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    Quote Originally Posted by Pretty Boy View Post
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    It's going to be a sad day for Sainsbury shoppers when they discover they have been paying 30p more for the same products for 25 years.
    More likely that Asda shoppers wil lose out as their prices rise to Sainsbury levels?

  17. #16
    @hibs.net private member Hibbyradge's Avatar
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    Quote Originally Posted by HibbyDave View Post
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    More likely that Asda shoppers wil lose out as their prices rise to Sainsbury levels?
    They can't really do that. People would just go to Tesco or Aldi etc.
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  18. #17
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    Why dont they do that now?

  19. #18
    If M&S Food and Waitrose merge, Iím going to pee myself with excitement.

  20. #19
    @hibs.net private member danhibees1875's Avatar
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    Quote Originally Posted by HibbyDave View Post
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    Why dont they do that now?
    ASDA shoppers don't because ASDA is cheaper. Sainsbury's shoppers don't because of the perceived quality they get.
    Mon the Hibs.

  21. #20
    @hibs.net private member Hibbyradge's Avatar
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    Quote Originally Posted by HibbyDave View Post
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    Why dont they do that now?
    Cos ASDA is cheaper.
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  22. #21
    @hibs.net private member lord bunberry's Avatar
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    I donít know about others, but Iíve always just shopped at the nearest supermarket to my house. Currently itís Asda, before that it was Morrisonís. I wouldnít travel further to go to another supermarket. M&S food is close by if I want something a bit more special, but thatís as far as it goes.

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  23. #22
    Coaching Staff heretoday's Avatar
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    Who cares?

  24. #23
    Testimonial Due Colr's Avatar
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    Could be some semantic games in play. They wonít close any stores but the Monopolies and Mergers Commission may force them to dispose of some if they have all the stores in an area.

  25. #24
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    Quote Originally Posted by heretoday View Post
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    Who cares?
    I would expect that some of the 330,000 employees of Sainsbury's and Asda will care if they lose their jobs.
    And I also expect that some of the country's shoppers will care if they lose their local supermarket.

  26. #25
    @hibs.net private member Hibs Class's Avatar
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    Quote Originally Posted by grunt View Post
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    I would expect that some of the 330,000 employees of Sainsbury's and Asda will care if they lose their jobs.
    And I also expect that some of the country's shoppers will care if they lose their local supermarket.
    And suppliers will suffer too. A day or so ago the Sainsbury's CEO said they'll look at the prices that suppliers charge each of Sainsbury's and Asda and then demand the lower price for the enlarged group.
    ​#PERSEVERED


  27. #26
    Private Members Prediction League Winner Hibrandenburg's Avatar
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    Just reading that as a result Marks and Spencer will be merging with Pound Stretcher. The new superstore will be called Stretchmarks.

  28. #27
    @hibs.net private member Steve-O's Avatar
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    Quote Originally Posted by RyeSloan View Post
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    Itís semantics I think.

    Effectively they are saying the financial benefits that they have called out for the larger group do not include any planned store closures. That of course does not preclude any store closures at a future date.

    Then there is the proposal to continue to trade under both brands..therefore technically the Sainsburyís and ASDA brands will still compete with each other but will ultimately have the same parent company.

    Itís not a strategy that appears to have much longevity and smells of being crafted in an attempt to get regulatory approval and avoid negative headlines.

    On the flip side they are suggesting this tie up will lower prices by 10% on a large number of frequently purchased items. A sizeable saving then for the end consumer.
    As noted, this scenario exists in New Zealand, and I think Australia too.

    Here there is a parent company that owns two supermarket chains, that on the face of it, operate quite separately:

    New World (which would be the Sainsbury's equivalent) and Pak N Save (the Asda equivalent, though potentially more 'budget' in style). You can pretty much get all the same stuff at each store, with the latter being a reasonable bit cheaper than the former.

    As with Sainsbury and Asda, the New World stores tend to be a bit smaller and also operate smaller stores in the city centre, while Pak N Save have larger supermarkets that tend to be out in the suburbs.

    Can't see any reason why the above scenario can't work in the UK.

  29. #28
    Old Codger Hibstorian Jonnyboy's Avatar
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    Quote Originally Posted by Beefster View Post
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    If M&S Food and Waitrose merge, Iím going to pee myself with excitement.
    Dunno about that but I heard today that Poundstretcher and Marks & Spencer are to merge and be known as Stretchmarks
    This is how it feels

  30. #29
    Scottish Cup Victory - Witness 2016 Scouse Hibby's Avatar
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    Quote Originally Posted by Jonnyboy View Post
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    Dunno about that but I heard today that Poundstretcher and Marks & Spencer are to merge and be known as Stretchmarks
    If you read the thread you would have heard that days ago 😁
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    Private Members Prediction League Winner Hibrandenburg's Avatar
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    Quote Originally Posted by Jonnyboy View Post
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    Dunno about that but I heard today that Poundstretcher and Marks & Spencer are to merge and be known as Stretchmarks
    C'mon Jonnyboy, I'm an avid reader of your posts, the least you could do is return the favour

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