Sainsbury’s Asda merger could ‘increase wholesale prices’

Sainsbury’s £7.3bn merger with Asda could lead to increased wholesale prices, industry experts claim.

Mike Coupe, Sainsbury’s chief executive, has claimed that the deal will lower prices of everyday items available in both supermarkets by 10%.

But James Brown, head of retail and consumer goods practice at pricing analyst Simon-Kucher, told Better Wholesaling’s partner publication RN that wholesale pricing could consequently rise. “Suppliers’ prices will be driven down, but if they object they risk removing themselves from the majority of the market,” he said.

“Added to this, suppliers won’t want to pass the added costs directly to customers and may consider recouping them elsewhere, such as through increased wholesale pricing.”

Read more expert opinion on how the proposed merger could impact wholesale prices. 

 

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Alex Yau
Alex is the product specialist for RN. He keeps on track of the latest launches and trends to help RN’s audience stay on top of the latest potential additions to their store each week.

1 COMMENT

  1. I tipped Sainsburys to be bought out by Walmart 2 years ago, and now its happened, Knowing Walmart they’ll be a buy out clause in the agreement giving them the right to buy the remaining shares once the fuss has died down. Let us give a huge welcome to Walmart, this company will hammer Tesco into the ground and restore good food shopping for shoppers accompanied by huge savings and bargain day specials. Lets face facts: Sainsbury’s were heading for bankruptcy, the fancy-dans who work in their buying offices had overdone the green food gimmick, worse still they’d followed Cadburys example of reducing the box contents 10%, increasing prices 15%, and using puffed up Big Daddy packaging. If you purchase a box of Cadburys today it’s a pity you can’t eat the boxes because there is more content in them than the now pale and getting paler each day foreign chocolate they are selling.

    R WILSON LEEDS UK

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