Location Sciences and Retail Economics highlight Sainsbury’s/Asda overlap

Mobile location specialists, Location Sciences, have partnered with research consultancy, Retail Economics, to provide insight into the consumer dynamics of both Sainsbury’s and Asda, following their mega-merger announcement last week.

Analysis was conducted into footfall for five sample stores, with a particular focus on areas where a Sainsbury’s and Asda store were in close proximity to eachother. Richard Lim, Chief Executive, Retail Economics, says: “All eyes are turning to the Competition and Markets Authority (CMA) as more details emerge revealing the scale of regional overlaps between the two supermarkets. Our research from a panel of more than 70,000 consumers across five stores shows that in locations where there is likely to be close scrutiny, over 25% of shoppers are found to use both supermarkets. In some locations, this rises to over one third.”

He adds: “The interests of consumers will need to be at the forefront of the CMA’s regional analysis to ensure localised competition remains fierce and brings about the best deal for shoppers. It appears inevitable that the combined retail group will be forced to divest some of their stores as the CMA will be forced to make some tough decisions. In the short-term, this could be good opportunity for the other incumbent grocers and the German discounters to snap up prized locations."

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