Rival supermarkets have warned that the Sainsbury’s–Asda merger could lead to a price hike and “impact outcomes for consumers”.
According to documents published by the CMA, which is currently carrying out its probe into the proposed merger, both Lidl and Waitrose have raised concerns about the probability of rising prices for consumers.
Lidl told the competition authority that the newly-formed entity would “have the capacity to increase prices” on products that do not compete directly on price with the discounters.
Meanwhile, Waitrose warned that the deal could “lead to a homogenous market, in which customers will be offered a reduced range and, ultimately, an increase in prices”.
It added that the increased buying power of the new group, which is predicted to have revenues of £51 billion a year, would effect competition and impact both consumers and suppliers.
As part of its probe, the CMA will seek views from interested parties like rival supermarkets and suppliers and publish submissions as it receives them.
When it was first announced at the end of April, Sainsbury’s boss Mike Coupe said the merger would lead to £500 million in cost savings and further investment to lower prices by around 10 per cent on everyday items.
Last week, it was revealed that the National Farmers Union raised similar concerns about the merger, warning that the £12 billion deal could reduce the choice and innovation of products while increase the squeeze on farmers.
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17 Comments. Leave new
I feel for the farmers who would be screwed down on their prices.
Also, when all the other big 4 are increasing their prices, their leaves a gap in the market for Lidl and other suppliers to undercut the big four.
Since Asda stopped their price guarantee, our weekly shop prices have increased.
We shop more at Lidl already.
I have already weeks ago, noticed Asda prices have gone up, Since then I haven’t visited the store anymore,
They could all drop their prices more than they do at present,
Bit rich Waitrose saying prices would go up, they are way more expensive than the other main supermarkets already!!
Have you tasted Waitrose food? Its like comparing sainsburys basics to sainsburys taste the difference saying its the same thing but different pricing
Mainstream brands are much pricier in Waitrose
What worries me is that Sainsburys food quality would be reduced to the poor standards of Asda’s.
Asda’s quality went downhill as soon as Wallmart got involved. Please leave Sainsburys alone!
I found the same happened when Morrisons took over Safeway.
It added that the increased buying power of the new group, which is predicted to have revenues of £51 billion a year, would effect competition.
Surely it would affect competition not effect!!
Maybe affect and effect should form a merger to reduce confusion and grammatical errors
What I worry about is someone owning a monopoly of supermarkets and online retailers Or catalogue retailer or generally owning a monopoly of places of where consumers purchase things from
Interesting that the competitors are complaining that prices would go up. But that would surely make those competitors more competitive vs JS-Asda than now? Which would be good for them. So why are they objecting? Methinks they protesteth too much…
You get what you pay for.
There is no comparison between ASDA and Waitrose!
Fresh produce at Waitrose is actually fresh.
Lidl and Aldi WILL be the alternative supermarkets ,I have already started to use these markets and the quality is every bit as good although the choice of goods is a little less
I see comments like this everywhere but what people donot seem to realise is this merger is basically sainsburys and asda merging and making walmarts part on the board nothing more than a financial beneficiary this is probably one of the best things the companys can do to get the American people out of brittish companies!
So many people are going to lose their jobs with this merger. There is no need for two head offices and there will be force store sell offs to companies with zero experience who will end up in administration or to Wholefoods (Amazon owned) who will downsize the huge stores.