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Sainsbury's-Asda Tie Up Could End Up Benefiting The Discounters: Analysis

Published on Aug 25 2018 2:15 PM in Retail tagged: Trending Posts / Sainsburys / UK / CMA / Asda / Competition and Markets Authority / Rapleys / Paywall

Sainsbury's-Asda Tie Up Could End Up Benefiting The Discounters: Analysis

Following the announcement by the UK's Competition and Markets Authority (CMA) that it has now commenced a formal investigation into Sainsbury's proposed £7.3 billion takeover of Asda, a leading property consultant has suggested that Aldi and Lidl may end up being among the beneficiaries of some of the knock-on effects of the deal.

As Richard Curry of commercial property consultancy Rapleys explained, the CMA process will likely necessitate the disposal of some stores, and the discounters could be well placed to pounce on this opportunity.

“Food retailers, across the board, have been trying for some time to right-size their portfolios and cut down on surplus space," Curry said.

"However, the key issue is that there aren’t that many players in the market who could realistically pick up Sainsbury’s or Asda stores in any disposal enforced by the CMA. The irony is that the most likely buyers are just those brands – Aldi and Lidl – who Sainsbury’s are looking to defend against with this move."

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