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Author Topic: Sainsburys and Asda in shock £10bn merger talks.  (Read 8654 times)

stockrotateman

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #25 on: 30-04-18, 07:26PM »
Well I wonder what Morrison's will do now.

optout

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #26 on: 30-04-18, 07:49PM »
I wonder what

Lidl
Aldi
netto
morrisons
Waitrose
co-op
Iceland
Marks &Spencer

will do now? Lets face it they will be considering their options right now, if this latest take over goes through.

Could they all get together? How big would the above amalgamation be in comparison to the previous and soon to be merger? (my guess is that they would still be smaller in the uk; edit, am I right)?

And what about the Cash & Carries and wholesalers out there?
« Last Edit: 30-04-18, 08:02PM by optout »
I AM NOT A REP, BUT......

AlexM

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #27 on: 30-04-18, 08:16PM »
I still have a deferred pension from the old DB scheme which I didn't really worry about before, this makes me wonder what state Tesco will be in in 30 years time when I retire - will that pension still be there?....

GasMonkey

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #28 on: 30-04-18, 08:28PM »
Consumers are creatures of habit they shop where the bargains are and the Asda and Sainsbury’s merging will make no difference to that. As for Sainsbury’s CEO making the comment that it will benefit customers with up to 10% price drop on certain items you can be sure it will be items that you cannot have for a meal ( bleach , washing up liquid) All in all it is obvious this merger will benefit only one group the fat cats at the top no one else.

stockrotateman

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #29 on: 30-04-18, 08:36PM »
 :thumbup:

stockrotateman

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #30 on: 30-04-18, 10:27PM »
Anyone seen the ceo of Sainsburys singing we’re in the money in between interviews,  job losses yeah right.

optout

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #31 on: 30-04-18, 10:47PM »
just saw him singing on the news...oops :D What a nob.
I AM NOT A REP, BUT......

notsofunny

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #32 on: 01-05-18, 12:22AM »
What is the difference between Tesco, Asda, Sainsbury's and any of the rest.  From what I have seen each has said it has to many managers, each said they have to many staff, and none have what is called a trader of days gone by, I would say that a so called trader has not been around for many a year, and each company Trades from head office deciding what and how things are to be done.
If you maintain that typically Tesco internal perspective then of course you will always believe you are right. But speak to a manager running a fresh food department at Morrisons and they will run rings around any fresh food manager at Tesco. At my local Morrisons the manager over the meat counter is a butcher, the manager over the fish counter is a fishmonger, the manager in the Cafe is a lifelong caterer and the manager over the bakery is a time served skilled baker. Ours are graduates with degrees in all sorts of things none of which have anything to do with retail - and the really scary bit is that they are seen as our 'future leaders'. That situation is symptomatic of the core problems at Tesco whilst simultaneously explaining the continued upward trend of Morrisons' results. Plus, Morrisons is actually led by a good retailer - another one we got rid of because we thought we wouldn't need them any more - whilst we are run by a marketeer who only knows how to cut his way to profit.

With regards to staffing levels, it's not unique or specific to retail to be shedding staff when the business conditions change - it's happening in industries nationwide including automotive, manufacture and financial services. To add to this, Mike Coupe at JS has already said this morning that there will be no store closures or job losses in stores as a result of the merger - a much better reassurance for both employees and investors than Drastic has ever given.

If Sainsbury's/Asda had been doing anything better in the way of trading they would not have had to decide they needed merging to get better prices when buying.
The dynamics in the market are more complex than that over simplification. Tesco has always historically grown rapidly not because of its retail prowess but because of a strategy of stifling and elimination of competition (without even getting into it's property, land bank and creative accountancy issues) - it has only grown through acquisition and buying up land to prohibit and prevent competitor openings. As a result, it has attained a quarter of the market for itself which has actually reduced competition - there is no realistic way in todays market any food retailer would assail that market share unless they merged in this way, so Tesco is sitting comfortably on it knowing that fact. Why reduce prices or improve service when there is no real impetus to do so - with a shop in every postcode you'll just take the money anyway, which is why it is the only one of the Big 4 whose prices were found to have increased above the rate of market inflation when investigated by The Grocer. Tesco's anti-competitive practices over the years are well documented.

And dont forget Sainsburys have been dropping not only staff  ,, but the Profits they have been making over the last so many years , and this is something that they are being forced into doing just like Asda who have been the bigest losers since aldi and lidl came into things
That's another vote for the merger going through then. Asda needs the merger to survive - and there's a bigger picture behind that given the dynamics at WalMart, especially since it has been pulling out of Europe leaving Asda as it's sole presence. As the announcement this morning described, the benefit is the huge potential to eliminate duplication of cost through syngergies in buying, distribution, head office, marketing etc - not in shops. Asda has a big presence in the North and targets a lower income demographic. JS has a greater presence in the South and targets a higher income bracket. It makes perfect sense that they should merge, the UK market is crying out for it.

Its not me mentaining anything its what each store group has been saying , each has been cuting back , and will cut back further as time goes along , Todays anouncment saying that asda and Sainsburys will carry on as stand alones will not ring true as time goes on, As to you talking about Morrisons , even they are moving away from what they call the market place as they call it and if i remember corectly they have suffer over the last few years on share price and on sales like all the others, and in this merger Asda and Sains do not follow the same thinking as to having a Butcher/baker annd so on those things are a thing of the past , as to a marketer well we have had accountants running tesco/asda/Sainsburys/marks...... for years , Things are not run from the store they are run from head office , 
as to it being more than simple as to why they are merging , well its not , they are doing so due to asda, Walmart not doing well and not being able to draw sales or even keep them , and Sainsbury being in the same situation as asda ,They are both looking for growth from getting together , they will in time do what every company does, and that is close one or more office spaces they have , cut back on w/house space , then cut more store staff , I heard Sainsbury have said on some tv station that they will cut food prices by 10% , Oh yes what 10% from the asda store prises or the Top heavey Sainsbury ones ? or do you think they will want to keep the stock market happy and just keep the divi going ?

 Only 2 thing to look out for is if this deal  passes , then who will be next ? and will they look at only the food market or will they also look at the Market that is Under the argos banner ?

notsofunny

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #33 on: 01-05-18, 12:49AM »
I wonder what

Lidl
Aldi
netto
morrisons
Waitrose
co-op
Iceland
Marks &Spencer

will do now? Lets face it they will be considering their options right now, if this latest take over goes through.

Could they all get together? How big would the above amalgamation be in comparison to the previous and soon to be merger? (my guess is that they would still be smaller in the uk; edit, am I right)?

And what about the Cash & Carries and wholesalers out there?

Marks and Spencer takes waitrose


Morrison's takes over co op,

aldi lidl stay the same,, but will find it harder

Tesco buys out Iceland  8-) well why not , they are not a direct competetore , and if Asda/ Sainsbury is allowed then Tesco Iceland would only bring Tesco in line with them in % taking terms ,,


memberx

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #34 on: 01-05-18, 01:33AM »
Why are you all worrying and surmising.  Asda Sainsbury's may well turn out to be no 1 overtaking Tesco.  But it's only by about 4%. Sainsbury's say will drop prices by 10%. That will come at a cost. It won't be long before Asda and Sainsbury's will fall under Tesco again and move Tesco back to number 1.
Then watch the city turn on Sainsbury's.

Not forgetting Tesco will be able to buy the stores the monopolies commission will make Sainsbury's sell. Tesco will move back to number 1 quite rapidly.
You may question me but time will tell.

stockrotateman

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #35 on: 01-05-18, 04:39AM »
Retrokid, maybe that's what Sainsburys/ Asda are banking on that they are made to sell stores for the merger to go through, and then they won't look like the bad guys.

Redshoes

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #36 on: 01-05-18, 09:27AM »
News keeps talking about us being knocked off number 1 spot. Not negative towards us for once. They keep saying number 1 so that can't be a bad thing. Also it mentions Asad and Sainsburys after merger in market share but for us before Booker merger. I know it's not the same but it will have an impact. They are also saying no changes to stores unless very close, they also say no closures or redundancies until they happen. There is always a get out clause as no company can ever say this will never happen and don't forget Asad have already slimmed right down with management and colleagues so they might decide can cope with a few more heads spread evenly

Welshie

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #37 on: 01-05-18, 09:44AM »
Am I reading the statistics wrong or even after the merger will Tesco still have a lot more stores than Asda/Sainsbury's  combined , does anyone know the figures on the make-up of Tesco stores ie; extra/suerstore/express/metro etc compared to the other supermarkets? It's hard to believe that add a have such a high percentage of market share with just 600-625 stores when Sainsbury's have a reported 1400 stores . Surely with their market share being so close Asda must be making a lot more profit with fewer overheads or am I reading this completely wrong ?

Trickster

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #38 on: 01-05-18, 11:32AM »
Tesco Number 1 or number 2 who cares......

This merger is good for the big4 whichever way you look at it.

Never listen to the men (or women at the top), Dave Lewis stated within the first few months of taking over Tesco he was going to be open and honest and even gave everyone his alleged email address to help him fix the company and still did what he wanted to do,  read between the lines and work it out yourself.

They know the monopolys commision will need to look into it so they can do without pressure from any other organisations like unions etc to do with job losses and store closures they need shareholders and staff to be on their side at present

[you]Buying Power (co**lers) [/you]

Sainsburys and Asda as with most of the big 4 use mostly the same suppliers for a lot of their products so the buying power is exactly the same 2 or 1 company this will hardly alter.

No job  losses both run separately (co**lers)

When the dust settles and after the deal has gone through the re-structuring will take place, just like Tesco now the Bookers deal is signed sealed and delivered, the changes are a coming to cut costs further in both areas and the business`s will be under the one header.

[you]2 head offices (co**lers)[/you]

As above. Within  3 or 4 years they will only have one head office

[you]Store closures ((co**lers)[/you]

Monopolies commission will sort that out for them

[you]My prediction[/you]

 Mystic Trickster predicts........This merger is to stop one of them going out of business , more probably Asda in the long term,  apart from a few exceptions a majority of their estates are big units, those that are old enough to remember how Archie Norman Saved them a few decades ago when they were in trouble.

It is geared up to cut costs and combat both Aldi/Lidl and Amazon their  structure will consist of the following.
The big stores Sainsburys or Asda will be branded as Sainsburys with the Argos and Habitat brands and Tui  range within these will be fullfillment centres geared around beating Amazon home shopping etc

The medium  stores will be discount arms be branded as Asda  to combat Aldi/Lidl Possibly keeping a range George clothing and cheap non food
Where there are 2 big stores together that are capeable of being the former unfortunatly they may close depending on turnover.

Tesco well.......we will integrate Booker stores within our stores so one of the SMs within Booker or Tesco will be gone and they can sell of the booker buildings  and staffing costs cut further. The smaller stores that are not turning over enough within the express format will be franchsed under a different header budgens or londis or whatever. The big stores will try to attract High Street names to bring brands within the stores and totally kill the High Street.

Will Tesco be affected by the merger ....I don`t think so ........if anything it may help specially if Asda as I predict become the discounting arm to combat the German Discounters and their expansion rate

Dave Lewis........History within 2 years  before the merger of Asda/Sainsbury takes effect.

Bottom line who cares number 1 or number 2 we will still exist.......relaxxxxx and enjoy.....What else can Drastic Dave and his team  do to us......

blutopia

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #39 on: 01-05-18, 11:40AM »
Am I reading the statistics wrong or even after the merger will Tesco still have a lot more stores than Asda/Sainsbury's  combined , does anyone know the figures on the make-up of Tesco stores ie; extra/suerstore/express/metro etc compared to the other supermarkets? It's hard to believe that add a have such a high percentage of market share with just 600-625 stores when Sainsbury's have a reported 1400 stores . Surely with their market share being so close Asda must be making a lot more profit with fewer overheads or am I reading this completely wrong ?

I'm not aware that Asda have any convenience stores, so that's probably the reason.

The-shelf-filler

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #40 on: 01-05-18, 01:16PM »
Tesco stores in the world is 7000.
Tesco stores in the uk is roughly 3700

Asda stores in the uk 631

Sainsburys stores in the uk 1411

Welshie

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #41 on: 01-05-18, 06:22PM »
Thank you the-shelf-filler

notsofunny

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #42 on: 01-05-18, 06:52PM »
Well I wonder what Morrison's will do now.
Who can they take over or who will take them over ?  That's the history it comes from , Used to work for Presto who then went on to take over safeway , who in turn got taken over by Morrison , But in truth I think they will stay as they are no other place for them to go , Unless Amazon take a punt and take it over to use as a spring board to get scale for entry into the UK food market

Trickster  Interesting  post :thumb up:

grim up north

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Re: Sainsburys and Asda in shock £10bn merger talks.
« Reply #43 on: 01-05-18, 06:54PM »
Anyone remember Kraft taking over the Cadbury's factory saying they wouldn't close it, and a month later they did. Those at the top will tell you black is white.