THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
Omnichannel Futures Conference 2020
Online Conversion Summit 2020
Future of Retail Marketing 2020
The HR Summit 2020
AI in Retail Conference 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
CMA blocks proposed merger of Asda and Sainsbury’s

The Competitions and Markets Authority has blocked the proposed merger of the Asda and Sainsbury’s supermarket chains after finding that it would make UK shoppers worse… View Article

FOOD & DRINK

CMA blocks proposed merger of Asda and Sainsbury’s

The Competitions and Markets Authority has blocked the proposed merger of the Asda and Sainsbury’s supermarket chains after finding that it would make UK shoppers worse off.

In its final report, the CMA said the merger would lead to price rises, reductions in the quality and range of products available, or a poorer overall shopping experience.

The investigation by a group of independent CMA panel members concluded that the deal would result in a reduction of competition at both a national and local level for people shopping in supermarkets, and not just in areas where Sainsbury’s and Asda stores overlap.

Stuart McIntosh, chair of the inquiry group, said: “It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week. 

“We have concluded that there is no effective way of addressing our concerns, other than to block the merger.”

The CMA said the investigation also found there would be fewer delivery options for customers shopping online. It also said that it would lead to motorists paying more at over 125 locations where Sainsbury’s and Asda petrol stations are situated close together.

In March Sainsbury’s and Asda vowed to introduce £1 billion worth of price cuts if the merger got the go-ahead.

Sainsbury’s also pledged to cap its fuel gross profit margin to no more than 3.5 pence per litre for five years while Asda said it would guarantee its existing fuel pricing strategy.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Online Conversion Summit 2020
Online Conversion Summit 2020
April 30 2020
The Hallam Conference Centre, London W1W 6JJ
The Retail Bulletin Online Conversion Summit 2020 Partnered by IMRG
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Hallam Conference Centre, 44 Hallam St, London W1W 6JJ
The Future of Retail Marketing for Customer Engagement
The HR Summit 2020
The HR Summit 2020
1 October 2020
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2020
AI in Retail Conference 2020
14 October 2020
Hallam Conference Center, 44 Hallam Street, London W1W 6JJ
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY