Sainsbury's and Asda merger 'could push up prices' - MSE News

Former_MSE_Callum

A merger between Sainsbury's and Asda could push up prices in stores and online, and lead to higher fuel costs at more than 100 locations, the competition watchdog has said...

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'Sainsbury's and Asda merger 'could push up prices'

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One-Eye

Sainsbury's has repeatedly said it expects the deal to allow it to lower prices by around 10% on products customers buy regularly.

CMA has provisionally found that, should the two merge, shoppers could face higher prices.

CMA says possible options at this stage include requiring the merging companies to sell off a significant number of stores.

So CMA thinks selling your local ASDA to Waitrose after a merger will lead to lower prices?

VfM4meplse

If prices do increase, the new enterprise will be spectacularly shooting itself in the foot.

Aldi and Lidl will gain in market share as a result.

NineDeuce

Funny as this is portrayed as bad news, but price increases on goods because of Brexit was no problem.....

Farway

One-Eye wrote: »

So CMA thinks selling your local ASDA to Waitrose after a merger will lead to lower prices?

Maybe sell to Lild / Aldi then?

One-Eye

Farway wrote: »

Maybe sell to Lild / Aldi then?

A typical Asda Superstore at 42,000 sq ft is too large for Aldi and Lidl (the new Aldi stores are 14,000 sq ft, the older ones 10,000). The former Netto stores, typically 9,000 sq ft, may be attractive to them, but the larger stores would probably only attract interest from Morrisons and Waitrose if they were to remain as food stores. I can't see Tesco being allowed to buy any. Iceland's Food Warehouse chain is an unknown factor.

Bacman

Asda promised cheaper prices when they got rid of APG's, no surprise they haven't delivered.


The Sainsburys/Asda merger promised cheaper prices, etc however it was pretty obvious that wasn't going to happen, as less competition meaning higher prices and less choice. Sainsburys seem to have increased prices recently on many items anyway, so aren't a particularly cost-effective store to buy now.



Also some own-brand Sainsburys items are the best, and some Asda own-brand are the best; if there was a merger it would be unlikely all the own-brands would remain in current format.


Perhaps the Board at Sainsbury's are no longer singing "We're in the money" as they did originally, I say a no-merger has to be good for the consumer.

Murphybear

According to the news a few days ago the Sainsbury/Asda merger is unlikely to go ahead.

In our nearby town, planning permission has been approved to build a new Sainsbury’s with petrol station and cafe so not a small one. Not far away is an Asda. They are completely rebuilding their petrol station, presumably at no small cost.

I wonder if both supermarkets know something we don’t?

roddydogs

Arr that small word "could"in other words they dont know, along with "may" possibly ete etc.

Guerillatoker

I'm guessing prices will rise if you shop at Asda and will fall if you shop in Sainsburys, going by their comparative prices.

thor

Guerillatoker wrote: »

I'm guessing prices will rise if you shop at Asda and will fall if you shop in Sainsburys, going by their comparative prices.

I think you're half right. I'll let you guess which of the two predictions I believe won't happen.:mad: