Sainsbury/ASDA merger

[Hibbyradge]

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/Monks+Cross+Dr,+Huntington,+York+YO32+9GX/@53.9869773,-1.0497885,17z/data=!3m1!4b1!4m5!3m4!1s0x487931f970a134af:0x4c55a b110ba04a02!8m2!3d53.9869773!4d-1.0475998

[Bostonhibby]

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/Monks+Cross+Dr,+Huntington,+York+YO32+9GX/@53.9869773,-1.0497885,17z/data=!3m1!4b1!4m5!3m4!1s0x487931f970a134af:0x4c55a b110ba04a02!8m2!3d53.9869773!4d-1.0475998Call 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".

Sent from my SM-J320FN using Tapatalk

[danhibees1875]

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. :dunno:


Not convinced that would be a great business plan though.

[grunt]

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.

[snooky]

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. :wink:

[Scouse Hibee]

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 😁

[Pretty Boy]

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.

[Steve-O]

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/Monks+Cross+Dr,+Huntington,+York+YO32+9GX/@53.9869773,-1.0497885,17z/data=!3m1!4b1!4m5!3m4!1s0x487931f970a134af:0x4c55a b110ba04a02!8m2!3d53.9869773!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 :hilarious

[Colr]

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!!

[lord bunberry]

They’re saying it will help them compete with Lidl and Aldi. I’m not sure how that’s going to work. I’m not really a fan of Lidl or Aldi, there ok for some things, but I wouldn’t 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.

[snooky]

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?
:aok: Sorted.

[lord bunberry]

Maybe Asda should just change their name to Sainsbury and keep the low prices?
:aok: Sorted.
The staff wear maroon in Sainsbury’s though. You need to factor that in.

[RyeSloan]

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/Monks+Cross+Dr,+Huntington,+York+YO32+9GX/@53.9869773,-1.0497885,17z/data=!3m1!4b1!4m5!3m4!1s0x487931f970a134af:0x4c55a b110ba04a02!8m2!3d53.9869773!4d-1.0475998

It’s 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 Sainsbury’s and ASDA brands will still compete with each other but will ultimately have the same parent company.

It’s 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.

[snooky]

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

[HibbyDave]

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?

[Hibbyradge]

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.

[HibbyDave]

Why dont they do that now?

[Beefster]

If M&S Food and Waitrose merge, I’m going to pee myself with excitement.

[danhibees1875]

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.

[Hibbyradge]

Why dont they do that now?

Cos ASDA is cheaper.

[lord bunberry]

I don’t know about others, but I’ve always just shopped at the nearest supermarket to my house. Currently it’s Asda, before that it was Morrison’s. I wouldn’t travel further to go to another supermarket. M&S food is close by if I want something a bit more special, but that’s as far as it goes.

[heretoday]

Who cares?

[Colr]

Could be some semantic games in play. They won’t 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.

[grunt]

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.

[Hibs Class]

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.

[Hibrandenburg]

Just reading that as a result Marks and Spencer will be merging with Pound Stretcher. The new superstore will be called Stretchmarks.

[Steve-O]

It’s 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 Sainsbury’s and ASDA brands will still compete with each other but will ultimately have the same parent company.

It’s 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.

[Jonnyboy]

If M&S Food and Waitrose merge, I’m 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 :greengrin

[Scouse Hibee]

Dunno about that but I heard today that Poundstretcher and Marks & Spencer are to merge and be known as Stretchmarks :greengrin

If you read the thread you would have heard that days ago 😁

[Hibrandenburg]

Dunno about that but I heard today that Poundstretcher and Marks & Spencer are to merge and be known as Stretchmarks :greengrin

C'mon Jonnyboy, I'm an avid reader of your posts, the least you could do is return the favour :wink:

[Jonnyboy]

If you read the thread you would have heard that days ago 😁


C'mon Jonnyboy, I'm an avid reader of your posts, the least you could do is return the favour :wink:

Ooops, sorry :greengrin

[ronaldo7]

Ooops, sorry :greengrin

Senior moment, John. 😉