Sainsbury’s and Asda Merger: Everything You Need to Know
Over the weekend a shock merger between ASDA and Sainsbury’s was announced. This has left many people in shock, as well as fearing for their jobs. From employees to consumers, we’ll give you the lowdown on everything you need to know about this merger!
First up, let’s summarise. Sainsbury’s and ASDA have agreed to join forces with Walmart having a 42% stake in the joined businesses and Sainsbury’s claiming the other 58%. This is certainly a game changer, Sainsbury’s and Asda would have a huge combined a market share of 31.4%.
Although there are currently no plans to close any ASDA or Sainsbury’s stores, head offices could potentially merge as well as a big shake-up for supply chains and warehouses. This would lead to a significant amount of employees losing their jobs and many are already not feeling secure in their current roles. Another aspect is how will other retailers compete? Merging the second and third largest retailer in the UK leaves little room for others to compete, even Tesco who will now be knocked off their top spot as the number one UK retailer. Some have argued that this merger is due to Aldi & Lidl’s rising successes in the past few years. One thing’s for certain, this power play has surprised people all across the industry. However, Sainsbury’s have stated that they will be maintaining both brands, rather than taking over completely.
Sainsbury’s have vowed to slash prices across the board, meaning this deal could be a winner for consumers. But, some aren’t so happy about this merger. Preconceptions about the brands have already lead to a clear division between consumers. Some have taken to Twitter to voice their opinion on the matter…
Sainsburys – Asda merger confirmed — and now people are wondering if their local Asda will be upgraded to a Sainsburys while the middle classes are dreading the thought that their local Sainsburys could be downgraded to an Asda.
— IanVisits (@ianvisits) 30 April 2018
Sainsbury’s has the most loyal following of any supermarket, even more than Waitrose. Buying out (‘merging’ with) Asda would seriously dilute that loyalty and undermine the Sainsbury’s brand.
— Andrew Booton (@AndrewBooton) 29 April 2018
There’s a lot of uncertainty at the minute, with Sainsbury’s having a lot of important questions to answer, especially those from employees fearing for their jobs. Despite the shock, there’s no doubt Sainsbury’s has a plan in place and have the answers people are looking for, it’s just a matter of time.
Is this a huge mistake? Or could this be what consumers need?
Let us know, we’d love to hear from you!
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