Asdaburys Watch

Fullofsurprises
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Sainsburys are planning to merge with Asda.
https://www.theguardian.com/business...uk-supermarket

Walmart, the US giant that gobbles up companies by the dozen before breakfast (a sort of Amazon with actual buildings) will (under the proposed merger) be a 40% shareholder in Sainsburys. (Walmart already own a lot of Asda.)

* Will Sainsburys quality slump? Asda is well known for being fairly low down the quality scale.

* Sainsburys claim their prices on many items will fall by 10%.

* They will (if competition authorities accept the merger) be the largest retailer in Britain, with some 30% of the market, larger than Tesco. Should this be allowed?

Behind this story lies growing automation and the ever-present threat of Lidl and Aldi, pressuring the other chains to cut costs and quality.

Should this merger be allowed to go ahead?
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DonoLad
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Nice post. One problem though, why would Sainsburys quality slump? Surely if sainsburys are buying out ASDA it will improve ASDA's quality not hinder sainsburys. I'm personally am a fan of the news though, great for something to write about in my A level exam for business aha!
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the bear
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(Original post by Fullofsurprises)
Sainsburys are planning to merge with Asda.
https://www.theguardian.com/business...uk-supermarket

Walmart, the US giant that gobbles up companies by the dozen before breakfast (a sort of Amazon with actual buildings) will (under the proposed merger) be a 40% shareholder in Sainsburys. (Walmart already own a lot of Asda.)

* Will Sainsburys quality slump? Asda is well known for being fairly low down the quality scale.

* Sainsburys claim their prices on many items will fall by 10%.

* They will (if competition authorities accept the merger) be the largest retailer in Britain, with some 30% of the market, larger than Tesco. Should this be allowed?

Behind this story lies growing automation and the ever-present threat of Lidl and Aldi, pressuring the other chains to cut costs and quality.

Should this merger be allowed to go ahead?
One will continue to shop at Waitrose; let them eat heavily discounted cake

:top2:
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SoulfulTwist
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If it doesn't increase the prices, if it keeps Asda's atmosphere when shopping (maybe that's just my area), if it doesn't drop quality... then go for it. If it compromises on any of the pros of both Sainsbury's and Asda, it should be thought through. Both pull different audiences tbh.
Lidl and Aldi... well their prices are cheap but the quality Plus they're usually so compact and full to the brim, it feels suffocating, personally.
Tesco, don't really go there. But Asda and Sainsburys need competition to keep them on their toes.

I'm not exactly a fan of the news though. I just prefer things the way they are currently.
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Fullofsurprises
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(Original post by DonoLad)
Nice post. One problem though, why would Sainsburys quality slump? Surely if sainsburys are buying out ASDA it will improve ASDA's quality not hinder sainsburys. I'm personally am a fan of the news though, great for something to write about in my A level exam for business aha!
I think all the market pressure at the moment is to go relentlessly downwards, not upwards. Waitrose have struggled at the upper level and have gone markedly down in quality in recent years to stay competitive. Sainsburys held out, but the side-effects of stagnant or real declining incomes for the majority since 2008 have now come home to roost and consumers are always seeking cheaper rather than better. Hence the boom in Poundland-type stores as well. I think this will more likely mean that Sainsburys will drop quality.

There is also the online picture and at the moment, Amazon have not strongly entered the UK groceries market, but in the US they are heavily competing against Walmart and it's only a matter of time until that hits Europe.
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DonoLad
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(Original post by Fullofsurprises)
I think all the market pressure at the moment is to go relentlessly downwards, not upwards. Waitrose have struggled at the upper level and have gone markedly down in quality in recent years to stay competitive. Sainsburys held out, but the side-effects of stagnant or real declining incomes for the majority since 2008 have now come home to roost and consumers are always seeking cheaper rather than better. Hence the boom in Poundland-type stores as well. I think this will more likely mean that Sainsburys will drop quality.

There is also the online picture and at the moment, Amazon have not strongly entered the UK groceries market, but in the US they are heavily competing against Walmart and it's only a matter of time until that hits Europe.
I don't know if I agree with what you said with sainburys but still valid. I just struggle to see Sainsburys losing there identity when the 2 brands will stay the same. But I totally agree with the second point, thats why I like the move so much. Without a doubt it will put a squeeze on the big 4 and I feel Sainsburys are acting accordingly. By trying to gain as much market share as possible they wont be impacted the worst out of big 3/4 when the inevitable happens. We have already seen the start of this with the sudden rise of the discounters.
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Amanzhol
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Luke5125
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(Original post by Fullofsurprises)
Sainsburys are planning to merge with Asda.
https://www.theguardian.com/business...uk-supermarket

Walmart, the US giant that gobbles up companies by the dozen before breakfast (a sort of Amazon with actual buildings) will (under the proposed merger) be a 40% shareholder in Sainsburys. (Walmart already own a lot of Asda.)

* Will Sainsburys quality slump? Asda is well known for being fairly low down the quality scale.

* Sainsburys claim their prices on many items will fall by 10%.

* They will (if competition authorities accept the merger) be the largest retailer in Britain, with some 30% of the market, larger than Tesco. Should this be allowed?

Behind this story lies growing automation and the ever-present threat of Lidl and Aldi, pressuring the other chains to cut costs and quality.

Should this merger be allowed to go ahead?
The merger should be stopped Walmart is a dishonest company that pushes low quality goods
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TimmonaPortella
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(Original post by Fullofsurprises)
(Walmart already own a lot of Asda.)
Afaik Asda is a wholly owned subsidiary of Walmart.
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Axiomasher
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Last time I was in a Sainsbury's there was an Argos in it, what's happening?
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shawn_o1
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I prefer to call it SainSDA
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SoulfulTwist
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(Original post by Axiomasher)
Last time I was in a Sainsbury's there was an Argos in it, what's happening?
:rofl:
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AngeryPenguin
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I don't like that this will effectively put Asdaburys and Tesco at over 70% of the market share. One more purchase and it'll look like a duopoly.

One of the things capitalism needs to function is competition; and governments should not be afraid to stop the formation of monopolies and duopolies when they start appearing.

Capitalism is like evolution - over the course of 500 million years, things might turn out great, but in the short term, human intervention can stop it making terrible mistakes.

Also, I don't trust Walmart. I think they are looking to take advantage of Brexit to get away with things that they wouldn't have previously - while the government is desperate for "investment" etc., and a trade deal with the US.
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Fullofsurprises
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(Original post by AngeryPenguin)

Also, I don't trust Walmart. I think they are looking to take advantage of Brexit to get away with things that they wouldn't have previously - while the government is desperate for "investment" etc., and a trade deal with the US.
It's being written up in the business media as a withdrawal by Walmart, but I also feel cautious about it and suspect that it is actually Walmart widening penetration into the UK, attempting to do it ahead of Amazon.
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Fullofsurprises
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(Original post by shawn_o1)
I prefer to call it SainSDA
Oddly close to 'sinister'. :afraid:
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username3031330
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OP's post reminds me of an exam paper haha
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Ayaa929
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Sainsbury’s are a high quality store with expensive stuff but like Asda everyone loves Asda because it’s cheap! WHOS WITH ME 😂
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Fullofsurprises
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(Original post by a_british_pie)
OP's post reminds me of an exam paper haha
Hang around TSR for a while and you kinda get into that mode. :giggle:
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nulli tertius
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(Original post by Fullofsurprises)
It's being written up in the business media as a withdrawal by Walmart, but I also feel cautious about it and suspect that it is actually Walmart widening penetration into the UK, attempting to do it ahead of Amazon.
The Wall Street Journal, which is probably closer to Wallmart than the British press doesn't think so.

https://www.marketwatch.com/story/wa...-uk-2018-04-30

The reality is that US and UK retailers have mutually struggled in each other's country.
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SamKent19
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(Original post by Axiomasher)
Last time I was in a Sainsbury's there was an Argos in it, what's happening?
Sainsburys bought Argos
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