Ross Miller
- Location: London Road, Dover
- Registered: 17 Sep 2008
- Posts: 3,709
#1
Wander what impact this will have on the local Sainsbury's & Asda stores
http://www.bbc.co.uk/news/business-43933517"Dream as if you'll live forever. Live as if you'll die today." - James Dean
"Being deeply loved by someone gives you strength,
While loving someone deeply gives you courage" - Laozi
Captain Haddock
- Location: Marlinspike Hall
- Registered: 8 Oct 2012
- Posts: 8,397
#2
Zilch, unless they are in close proximity.
"The world is still a weird place, despite my efforts to make clear and perfect sense of it".
Dr. Hunter S Thompson
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#3
Seems an odd combination to me I like Sainsbury's but don't go much on Asda. I think the rise of Aldi and Lidl will continue further cutting into the market share of the big four.
Captain Haddock- Location: Marlinspike Hall
- Registered: 8 Oct 2012
- Posts: 8,397
#4
howard mcsweeney1 wrote:Seems an odd combination to me I like Sainsbury's but don't go much on Asda. I think the rise of Aldi and Lidl will continue further cutting into the market share of the big four.
Makes sense. Economies of scale in terms of purchase and especially distribution/warehousing/home delivery costs will allow to compete on level playing field with giant Tesco.
Jan Higgins likes this
"The world is still a weird place, despite my efforts to make clear and perfect sense of it".
Dr. Hunter S Thompson
Ross Miller- Location: London Road, Dover
- Registered: 17 Sep 2008
- Posts: 3,709
#5
Makes lots of sense in terms of all the things you suggest Able Seaman Codpiece... plus the majority of ASDA stores are up't North & Sainsbury's darn Sarf so they will enhance their geographical spread and attract a wider democratic to the combined group than each currently does individually
"Dream as if you'll live forever. Live as if you'll die today." - James Dean
"Being deeply loved by someone gives you strength,
While loving someone deeply gives you courage" - Laozi
Pablo- Registered: 21 Mar 2018
- Posts: 614
#6
But look at towns which have both a Sainsbury’s and an ASDA. Canterbury and Folkestone for example. If they close any of those shops they will lose a proportion of their previous trade to Aldi &/or Lidl.
Pablo- Registered: 21 Mar 2018
- Posts: 614
#7
And it’s not clear from the PR whether this is Sainsbury’s buying ASDA from Wal-Mart or Walmart buying out Sainsbury’s. Nowadays there’s no such thing as a merger of equals. Given that Walmart’s share price has been plummeting recently, I favour the theory that Sainsbury has seen an opportunity to snap up a few more Prime sites and close many down.
Guest 1713, howard mcsweeney1 and Ross Miller like this
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
#8
seeing that sainsburys had a shop in some years back, stayed open for a while then closed,.
Guest 2547- Registered: 1 Apr 2018
- Posts: 2,158
#9
Reminds me of the wonderful Stephen Fry's quip - "I do love Sainsburys, you know. It keeps the riff-raff out of Waitrose".
howard mcsweeney1 and Guest 1467 like this
Guest 1395- Registered: 5 Nov 2014
- Posts: 463
#10
It seems to be Sainsburys acquiring Asda but Walmart buying shares in Sainsburys. The main gains would seem to be from scale economies in purchasing, admin and distribution. Given that they target slightly different markets, the names are likely to remain. However, it's possible that Canterbury Sainsburys could go, given that they've been after a better site for some time and have been thwarted by the council.
Lew Finnis
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#11
Paul M- Registered: 1 Feb 2016
- Posts: 393
#12
That'll be the only Merger in history that doesn't involve job losses then! We'll see.
Jan Higgins likes this
Reginald Barrington
- Location: Dover
- Registered: 17 Dec 2014
- Posts: 3,261
#13
"Sainsbury's chief executive Mike Coupe also said the deal would not lead to store closures or job losses in stores."
No job losses in stores! No mention of the admin and supply chain job losses that will likely be in the thousands!
Paul M likes this
Arte et Marte
Weird Granny Slater
- Location: Dover
- Registered: 7 Jun 2017
- Posts: 3,095
#14
Mr Coupe (or should that be 'coup'?) must have been reading Marx on the concentration of capital:
Reginald Barrington likes this
'Pass the cow dung, my dropsy's killing me' - Heraclitus
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#15
So Sainsbury's will be reducing prices to bring them in line with Asda, suppliers will be going into panic mode.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#16
Courtesy of the Times.
The boss of J Sainsbury has hit back at claims that the supermarket group’s proposed merger with Asda would be bad for suppliers and would lead to rising prices for consumers. Mike Coupe, chief executive of Sainsbury’s, said that his job was to “go to bat” for customers and that a combination of Britain’s second and third largest grocers would generate £350 million of synergies via enhanced buying power that would improve choice and prices for shoppers.
He made the remarks as Sir Vince Cable, leader of the Liberal Democrats, wrote to Andrew Tyrie, chairman of the Competition and Markets Authority, yesterday urging the regulator to “bare its teeth” in a thorough investigation of a deal that could redefine Britain’s grocery market. Mr Coupe said: “My job is to act in the best interests of our customers. Eighty-five per cent of the food and grocery sales of both organisations comes from 100 suppliers and all of them are large multinational suppliers who have huge pricing power and will be larger, in some cases, than the combined entity [of Sainsbury’s and Asda]. All we are asking is that the top 100 suppliers give us the same price in each business.
“We want to transfer money from large suppliers, who make healthy profit margins, and give it to customers in the form of lower prices — and in the process we will also give some back to our shareholders. In the court of public opinion, I don’t think that would be an unreasonable stance to take, especially if those savings are passed on to customers in the form of lower prices.” If the supermarkets’ merger goes ahead, it will create an enlarged group with sales of £51 billion, 330,000 staff and more than 2,800 UK stores. Under the terms of the deal, Walmart will receive a cash payment from Sainsbury’s of nearly £3 billion and will hold a 42 per cent stake in the combined group, albeit with 29.9 per cent of the voting rights. The deal values Asda at £7.3 billion on a debt-free, cash-free and pension-free basis.
News of the merger has been met by alarm from politicians and trade unions, who have raised fears about the impact on suppliers, farmers and jobs. Sir Vince said in his letter to Mr Tyrie that the merger raised a number of issues, “from the potential for job losses to the development of even more powerful local concentrations of monopolitistic power that will damage independent high street retailers”.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#17
Ross Miller likes this
Jan Higgins likes this"The world is still a weird place, despite my efforts to make clear and perfect sense of it".