It has recently been confirmed that supermarket giants Sainsbury's and Asda will be merging together, in a rare joining of forces.
The big move has been hitting the headlines recently – but what we want to know is, how will it affect us, the customers?
Sainsbury’s chief executive, Mike Coupe, revealed that combining the UK’s second and third biggest supermarkets should ideally see prices decrease in stores.
According to him, as a result of the merger, customers should expect a 10% price decrease “on many of the products customers buy regularly”.
And apparently, we don’t need to worry about any Asda or Sainsbury’s stores closing down either.
Mike suggested that no stores will be subject to closures in a new statement. He said, ‘There’s been a bit of commentary over the weekend where people have been alluding to the fact that the only way of making this happen is by closing stores – that is not true.
‘The stores will continue to trade and of course that’s where the vast majority of people employed by both companies actually work.’
It’s also been reported that no stores will change either – for example, your local Sainsbury’s will not become an Asda, suddenly.
But what about Nectar points? Unfortunately, it looks as though the future for customers following the Sainsbury’s loyalty scheme will remain a little murky for the moment. Sainsbury’s revealed that they could not comment on what would happen to Nectar points after the merger.
While the move to merge the two stores is still being discussed, the decision could create a supermarket ‘giant’.
If both Asda and Sainsbury’s team up, they would hold 31.4% of the market share. This is compared to Tesco’s, the third biggest supermarket, 27% market share.
Many analysts have also been curious about Argos stores – an extension of Asda.
Nothing official has been said about whether any Argos branches will close, but it’s been reported that many Asda stores could perhaps house Argos outlets following the merger.