THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
The Papers
Retail Solutions
Food & Drink
Interviews
Property
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
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 off.

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

Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Conference
The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
The 11th HR Summit 2019, Hallam Conference Centre, 44 Hallam St, Marylebone, London W1W 6JJ
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy