Supermarkets Sainsbury’s and Asda have agreed a potential merger. While plans are still in their infancy, the proposal could see the companies seize a huge 30% slice of the market. So what might that mean for consumers?
Could we see our local stores closed, or restructured? Might there be price increases because consumers will have less choice? Or will our shopping become cheaper because suppliers will have even less wiggle room when negotiating costs?
A move of this size is likely to prompt a review by the Competition and Markets Authority (CMA) – the body which regulates big business deals to ensure fairness – so it is still far from a done deal.
But according to one expert, the deal could eventually spell the end for Asda. Retail analyst Natalie Berg told HuffPost UK: “I imagine the Asda brand will ultimately disappear from the high street. There’s no room for a retailer like Asda in today’s market. If shoppers want low prices, they head to the discounters. If they want convenience, they head to Amazon.”