Sainsbury’s has spelled out the terms of its planned merger with rival Asda and promised that shoppers would get a 10% cut in the price of popular foods as a result.
The companies said both brand names would be retained and there were no plans for store closures as a result of creating the group comprising 2,800 stores with sales of £51bn, overtaking Tesco to become the UK’s largest retailer, with a workforce of 330,000 people.
Together, the chains could topple market leader Tesco, Neil Stern, a partner at McMillanDoolitte, wrote in an op-ed for Forbes on Monday. Historically, Sainsbury’s is a more upscale grocer catering to high-income earners in areas like London, whereas Asda focuses on delivering the lowest price to customers in more suburban or rural locations. “Now, Waitrose has supplanted Sainsbury’s on the premium end and the two large German discounters, Aldi and Lidl, have gobbled up market share in the value sector,” Stern wrote. “The result has been increased pressure on profitability in the sector for some time.”
So changes will come. In the reefer logistics arena, Easyfresh will be ready to keep on supplying smart service packages to the outcoming entity.