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Asda revival continues as sales rise again | Asda revival continues as sales rise again |
(35 minutes later) | |
Asda's sales jumped 2% in the three months to September as the recovery of the Walmart-owned supermarket continued. | |
The result marked the sixth consecutive quarter of rising like-for-like sales, which strip out the effect of new stores. | The result marked the sixth consecutive quarter of rising like-for-like sales, which strip out the effect of new stores. |
The retailer attributed the rise to the strength of its own-label brands. | The retailer attributed the rise to the strength of its own-label brands. |
Asda has a 15.3% share of the UK grocery market, just short of Sainsbury's on 15.8%. | |
The two supermarkets plan a merger that will form the country's biggest chain, if the competition watchdog approves the deal. | |
Store sales | |
The Competition and Markets Authority is currently considering whether the deal will mean less consumer choice, higher prices or poorer service. | |
The combined group would have 2,800 stores and 31.4% of the grocery market, but it may have to sell some stores to get the deal through. | The combined group would have 2,800 stores and 31.4% of the grocery market, but it may have to sell some stores to get the deal through. |
Between 73 and 300 supermarkets will need to be sold, according to industry estimates. | Between 73 and 300 supermarkets will need to be sold, according to industry estimates. |
The CMA will take into consideration the rapid rise of Aldi and Lidl when determining how many stores should be sold off. | The CMA will take into consideration the rapid rise of Aldi and Lidl when determining how many stores should be sold off. |
That could lower the number of disposals "Sasda" is forced to make. | That could lower the number of disposals "Sasda" is forced to make. |
In their own submission to the CMA, Sainsbury's and Asda said the two German chains "have had the most profound impact" on the UK grocery market over the past decade. | In their own submission to the CMA, Sainsbury's and Asda said the two German chains "have had the most profound impact" on the UK grocery market over the past decade. |
They now claim just over 10% of the market, according to Kantar Worldpanel. | They now claim just over 10% of the market, according to Kantar Worldpanel. |
A merger would allow Argos concessions to be put into Asda stores - a move that shoppers would welcome, according to Kantar. | |
Chris Hayward, a consumer specialist at the market research firm, said: "Consumers want convenience and to have to visit as few outlets as possible, which is why Asda's shoppers have identified a need for more DIY, homecare, electricals, homewares and toys in its stores. | |
"That's not necessarily possible for Asda on its own, but as a one-stop-shop an Asda-Argos tie-up would play to the needs of Asda's core family-oriented, time-poor demographic and could boost footfall at their larger out-of-town outlets." |
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