300 stores could be forced to shut in Sainsbury’s Asda merger

64814

Up to 300 Sainsbury’s and Asda stores may have to be disposed of if the landmark merger between the two grocers is approved, according to new research.

An analysis by The Times has revealed that far more stores than previously thought could be in danger of having to shut their doors in order for the merger to be approved by the Competition and Markets Authority (CMA).

By using modelling techniques typically used by the watchdog, at least 300 catchment areas have been identified where the pair could be forced to offer disposal “remedies” to alleviate concerns about high local market share.

In roughly half of these areas Big 4 rivals Tesco and Morrisons would be viable buyers to move into the vacant store spaces.

The other half are likely to be snapped up by discounters Aldi and Lidl, both of which have aggressive expansion drives. Other grocers like Waitrose and Marks & Spencer would also be in the running, but both have scaled back their store expansion programmes due to unsteady finances, while the Co-op is focusing on smaller convenience outlets.

The merger of the country’s second and third largest supermarkets would topple Tesco’s longstanding reign as the UK’s biggest grocer my market share.

Sainsbury’s-Asda’s revenues would also be £51 billion thanks to network of 2800 Sainsbury’s, Asda, Habitat, Argos and George stores.

When it was first announced at the end of April, 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.

The CMA has since confirmed that it was looking into the proposed deal and was in the “pre-notification” phase, which means it was in the midst of gathering information from Sainsbury’s and Asda before a formal inquiry could be launched.

Click here to sign up to Retail Gazette‘s free daily email newsletter

37 COMMENTS

  1. They say about Sainsburys and Asda being to domineering. But what about Aldi I mean they’ve got two stores in nearly every town or district what about them being to domineering but nothing is said about that. What’s good for one should be good for the other.

    • Aldi stores are a 10th of the size, they concentrate on 2 or 3 choices of each item and simple value for money. Odly enough a lot of people like this.

  2. I prefer asda too sainsbury’s but my problem is my asda is out of my way and I don’t drive so il be glad wen they do merge coz fingers x it means I’ll be able 2 bhy more things in s
    Asda so hope sainsbury’s market St huddersfield becomes an asda fast coz I’m all saving except we need our hospitals mote

  3. £51 billion yet they are still be subsidised by the taxpayer in the form of in work benefits that their poorly paid, zero hours staff need to survive

  4. This is one of the reasons why I’m glad I no longer work in retail. If you ever get fed up of working in retail you can read about how I escaped by searching for Retail Stole My Life on Amazon.

  5. Sainsbury’s is the devil their own fairly traded tea is nothing but exploitative colonialism. I recently saw a Dragons den were they had taken advantage of a couple. My friend worked and how they have treated their staff recently is awful.

  6. Matt Mason
    You don’t know what your on about. Sainsburys payrate at a minimum regardless of age is £9.28 extra if in London and all staff have proper contract no zero hours. Why throw a untruth in just to make your own life sparkle.

  7. as long as mr coupe keeps pockets lined.. He is only thinking off himself, not what it is doing to the staff…. So glad i took my redundancy just feel for the people who still work for them…..

  8. Been working for Sainsbury’s for 13 years. Such a bloody shame. Redundancies and seeing friends leaving is just heartbreaking. I’m hanging on but loosing my Sunday premium is going to put so much pressure on my family. Bring back Justin king.

  9. I worked part time at Asda for a while, the last straw for me was when unloading a chilled/freezer artic on a Friday we came accross 3 pallets of lcd tv’s and assorted electrical goods up by the freezer section. On the Saturday delivery we found the same with ironing boards thrown on top!

  10. I’ve only just been in our Sainsbury’s in Scarborough after not been in for 5wks due to an operation but there’s no change some of the shelves are empty and the clothes department that I usually love been no change. Come on Sainsbury’s sort yourselves out.

    • You are a un thinking selfish git. What about people who are working in these shops. Like my wife. Are you going pay our bills if she is out of work then. So that’s so what. People are to quick to speak with out thought of those involved.

  11. I have worked for asda for 17 years I am so glad that Sainsbury’s are merging with Asda it will be good for both supermarkets

  12. I realise that retail companies have to adapt but not at the expense of customers and retail staff.I’m already finding it hard to buy my favourite wholemeal bread rolls in Sainsburys and in Asda the shelves are empty by mid morning! So I want to spend money but can’t! Plus I like to buy my groceries in one shop and in one visit as I haven’t got time to keep going back.

  13. To Alex saying so what if they do close. So you’re going to pay our bills if my wife is put of a job are you…..don’t think so. So that’s so what. Un thinking selfish git.

  14. I’ve worked at asda for 30 years and yes I fear for my job. But I must admit some of the comments on here are from people who think self self self constantly. It’s like when the mines closed if it did not affect you , you could not give a a toss.

  15. To Marie
    Youre absolutely right and on point.
    Short term its the unknown how these two supermarket groups will enter this new phase
    Long term we need this especially post brexit for too long Tesco has dominated this sector for me its new beginnings and I welcome the merger.

LEAVE A REPLY

Please enter your comment!
Please enter your name here