What do you think about the Asda & Sainsbury's merger?

You're assuming a merger at the bottom level, not one at the top. Why?

What the reality of this most likely means is that the organisations come together for a common logistics and supply pool, meaning efficiencies and cost savings at that level, with the ability to buy in even greater bulk and lower prices in stores.

A merger involving one of the shops disappearing won't happen for the reasons you suggest.

I can't see them having two megastores in the same town. Some places have a Sainsbury's and Asda in close proximity to each other. I wouldn't worry about the Sainsbury's Local stores, as Asda aren't in that market, but the megastores is another issue.

My knowledge of business is limited, but I am a bit pessimistic about this.

They're targeted at two different demographics.

This is, for them, about being able to lower their prices to compete with the discounters; Aldi and Lidl.

Taken from BBC News

"Sainsbury's chief executive Mike Coupe also said the deal would not lead to store closures or job losses in stores."


This does not rule out job losses in the warehouses and in some other non-store roles though

It makes me a little uneasy. I view them as two different shops with different styles. I go to Sainsburys for certain things I don't go to Asda for. Where I come from we have a massive store of each, I don't want either of them to go. I don't know much about what would happen, but I like them being separate shops.

Completely agree. We don't have a Sainsbury's here, but there are a few nearby and it attracts a much different clientele to Asda with different prices, different foods and the people shopping at our local Asda tend to be single-mothers and the types without much money or gravitas. Asda is the only one of the big four that we rarely use. Quite often go to Tesco and Morrisons, with an occasional Sainsbury's visit if in an area with one.

They will say that, but in a town with a Sainsbury's and an Asda, it is inevitable that one will close eventually.

I know that they are different demographics, which makes me wonder even more as to why they are doing this. Asda could compete with Lidl/Aldi, but Sainsbury's just doesn't target that market and would be unwise to do so.

They will say that, but in a town with a Sainsbury's and an Asda, it is inevitable that one will close eventually.

If they target two separate markets, how will they run as one company?