Image credit: Asda Eastbourne: source Google Maps
Announced today was the news that Asda and Sainsbury’s’ are likely to merge. Are there any possible implications for local people both in relation to jobs and the utilisation of local services?—Bay Life 28 April 2018
Radical realignment of brands would see a £10billion merger
Both major brands have seen their position eroded by supermarkets like Aldi and Lidl, appealing to consumers directly based on a no frills approach to the weekly shop.
The new supermarket conglomerate would have 31.4% market share. Tesco’s currently has a 27.6% share.
This radical realignment of the brands would see a £10billion merger.
The new group would have shares of the consumer pie in food, clothing, household goods and toy retailing. Sainsbury’s is currently expanding Argos, part of the brand, creating 150 permanent tech jobs to support digital growth.
They are also involved in trials of UK’s first grocery delivery service by electric cargo bike.
Family orientated Asda is focused on initiatives such as saving on waste. They are currently celebrating the 1000th Tonne of Carrots Saved from Waste, simply because they are mis-shapen (the carrots not Asda).
The major story, inevitably, will have potential consequences with regard to staffing levels and store closures.
Already discussions of store closures are taking place as the story breaks.
Analysts have suggested the merger could lead to thousands of job losses as the two chains combine various services. The supermarkets, as a result of the threat from Aldi and Lidl have cut thousands of behind the scenes systems administration and shopfloor jobs as they have been forced to compete with the new supermarket brands.
We have to hope of course that any such closure will not apply to our Asda, based at The Crumbles – Pevensey Bay Road,Eastbourne. The store is utilised by many Pevensey Bay residents, particularly senior citizens, because of closeness and access by public transport.
There are also a significant number of local people that work at the local Asda.
Sainsbury’s confirmed it is in talks with the US retail giant Walmart, owners of Asda since 1999.
The statement was made today (28 April) after Sky News reported the story.
The combined group would comprise 2,800 stores.
The statement from J Sainsbury plc, said “Sainsbury’s confirms that it and Walmart Inc. are in advanced discussions regarding a combination of the Sainsbury’s and Asda businesses,”
A further announcement is expected on Monday morning.
Richard Lim, from the research consultancy Retail Economics, said the merger would be a “game changer in the UK grocery market of epic proportions”.
Part of the reason for the merger may also be the fact that Tesco recently merged with Booker, the largest food wholesaler in the UK.
