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Business

Kent stores safe as Sainsbury's and Asda confirm merger

By: Chris Britcher cbritcher@thekmgroup.co.uk

Published: 09:09, 30 April 2018

Updated: 09:28, 30 April 2018

Confirmation of the merger of supermarket giants Sainsbury's and Asda should not result in any store closures, bosses claim.

Both brands have dozens of Kent outlets and there were concerns some could close as the operation looked to streamline once becoming one.

But Monday's announcement terms have been agreed between Sainsbury's and the Walmart owned Asda, came with it assurances of no reduction in shop numbers.

Asda's Canterbury store. Picture: Chris Davey

It will bring their combined strength across the country to 2,800 stores. Both brands will continue to exist.

David Tyler, shairman of Sainsbury's, said: “We believe the combination of Sainsbury's and Asda will create substantial value for our shareholders and will be excellent news for our customers and our colleagues.

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"As one of the largest employers in the country, the combined business will become an even greater contributor to the British economy.

"The proposal will bring together two of the most experienced and talented management teams in retail at a time when the industry is undergoing rapid change. We welcome Walmart as a significant shareholder and look forward to working closely with them.”

Sainsbury's is to merge with rival Asda

Judith McKenna, president and CEO of Walmart International, added: “We believe this combination will create a dynamic new retail player better positioned for even more success in a fast-changing and competitive UK market. It will unlock value for both customers and shareholders, but, at the same time, it’s the colleagues at Asda who make the difference, and this merger will provide them with broader opportunities within the retail group. We are very much looking forward to working closely with Sainsbury's to deliver the benefits of the combined business.”

But Tim Roache, general secretary of the GMB, said he feared for what the future could bring. He said: "It remains to be seen if this ‘supermarket sweepstake’ is the real deal or a bargain basement ready meal.

“Hundreds of thousands of workers stand to be affected, and all know such announcements tend to be followed by management speak like ‘rationalisation’ in the name of ‘efficiency’.

"What that usually means is job losses or cuts to pay, terms and conditions which would be wholly unacceptable.

"It is quite right to be asking now in whose interests this proposed merger is being tabled? Is it workers and customers or the shareholders and speculators not happy with the hundreds of millions they already make in a year?”

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