Lupo di mare
29 Apr 2018
Re: Savings are great but they need to t... pyueck, good morning - "Still think for this deal using separate brands long term will mean efficiency savings can’t be fully realised."Quite so, and in time they might create a new combined brand.
acsatix
29 Apr 2018
Re: Savings are great but they need to t... I do not know. for that matter argos brand has been retained... if it is true the british attach a class membership status at shopping at asda or sainsburys the big question mark is what status a new brand will be associated to... if one does not know, better to keep the brands as they are.
schwee
29 Apr 2018
In Play SBRY now in play, with Qataris 22 per cent holding hopefully wanting cash. Perhaps M&S will be tempted, or more likely Leclerc or Carrefour.
pyueck
29 Apr 2018
Re: Savings are great but they need to t... Fair enough you got me with that one! Still think for this deal using separate brands long term will mean efficiency savings can’t be fully realised.
acsatix
29 Apr 2018
Re: Savings are great but they need to think... " You don’t see Apple selling some of its products under a different brand do you?"they bought Beats audio and the brand beats is still used...
pyueck
29 Apr 2018
Savings are great but they need to think about branding The potential savings in this deal are huge. Distribution for one, can save more money in this game the larger your network. Systems costs, they could in theory use one ERP for all stores. Head office costs and management costs can be slashed. Purchasing costs can be slashed, not just though being able to negotiate better prices but though consolidation of teams.However... all the above are very very hard to achieve. Integrating systems and distribution networks can be really complex and if done badly cause significant business disruption. Also beware claims of ‘integration savings of x’ claims, no names mentioned but when I have looked into a few companies claims they are not genuine savings (i.e save £1 through one person leaving but don’t mention the £2 being spent on new contractors etc.)I do see opportunities through rolling out Argos brand to all stores and create a real nationwide scheme of collection points. It should be noted though that Tesco tried this 15 years ago with Tesco direct, what’s the difference ?I think eventually the Asda brand should be scrapped, maybe even create a totally new brand including Argos (how bold would that be!). If you have a good brand in my opinion you should use it always, why have separate adverts on tv for Argos Sainsbury’s and Asda ??? Why keep three branded fleets of lorries, home delivery vans and staff clothing. Get the brand right and roll it out everywhere in my opinion. You don’t see Apple selling some of its products under a different brand do you?
videodawn
28 Apr 2018
Re: Takeover not Merger The corporate structure is complex, but it seems that ASDA Holdings UK is a subsidiary of Wal-Mart UK which in turn is owned by Wal-Mart in USA.Merging the UK Wal-Mart business with Sainsbury's would seem to be a local matter which does not involve the US business. Whether it really is merger or Wal-Mart offering to buy the SBY equity is not clear. And I thought that SBY was largely owned by a Qatar fund, and they might want an exit for a profit. The only conclusion is that Wal-Mart is seeking to attain the dominant position in UK and the Qataris want their cash back.I cannot see where any synergy exists between a supermarket which pitches to the less well off and another which pitches to the middle class. "Et TU, George?"I don't see it getting past the CMA.I buy at both but dress differently at each to avoid embarrassment. LOL
Watfordhornet
28 Apr 2018
Re: Takeover not Merger Surely Sainsbury cannot takeover Asda. Walmart must be many multiples the size of Sainsbury.Guessing up to Walmart how this works plus the regulator. All good as the main stakeholder not do anything that was not in the interest of themselves
Green300
28 Apr 2018
Re: Takeover not Merger Very bold move, like others I always thought that their target / typical customers have different socioeconomic profiles. Just shows how the sector has changed and how the people who know it well expect it to change in future.I was always half expecting an M&S-Sainsbury tie up.A bold and fascinating move, I’m my opinion.
videodawn
28 Apr 2018
Re: Takeover not Merger You are right Polly, but Waitrose does not have anything like the number of food stores of M&S. They will benefit too.
polly hound
28 Apr 2018
Re: Takeover not Merger There's Waitrose as well as M&S in this middle class market...p-
videodawn
28 Apr 2018
Re: Takeover not Merger ASDA and Sainsbury's have completely different customer profiles and I cannot see ASDA going upmarket, so Sainsbury's will go downmarket. Can you imagine a Burger King in Sainsbury's rather than the existing cafes? Retail disaster IMO.This will leave M&S with a clean sweep of the middle class customer base for quality food.
energysaver
28 Apr 2018
Re: Takeover not Merger sounds like walmart will be the biggest single shareholder. so it looks more like a walmart takeover of sainsbury. so bound to be an uptick in price. though i'm not convinced that merging two underperforming retailers makes an overperforming one.i think authorities/regulators should be more worried about amazon and other e-retailers getting too big rather than conventional domestic ones.the FT:"The deal is set to be structured so that Walmart receives new shares in Sainsbury’s and emerges as the UK grocer’s biggest shareholder, according to a person close to the talks. The transaction would create a combined company worth £15bn including debt. "
Proverbs 26 vs 5
28 Apr 2018
Re: Takeover not Merger May reading is that Wal-mart who own asda are going to take over Sainsbury's.
schwee
28 Apr 2018
Takeover not Merger No such thing as a merger. Clearly SBRY is taking over Asda, so either they are going to dilute existing shareholders and/or increase debt. As for CMA, they have made a rod for their backs by nodding through Tesco/Booker.
