'Unguarded' Sainsbury's CEO singing 'We are in the MONEY' during Asda merger


In fact, I can confidently predict that this is the first of many more mergers and acquisitions to come. It wasn't so long ago that retailer margins in the United Kingdom were amongst the highest in the world.

"The announcement over the weekend that Sainsbury's wants to buy Asda is concerning".

The deal, announced yesterday, is expected to face thorough scrutiny by the Competition and Markets Authority, which could force the chains to sell some of their stores before giving them the green light to merge.

In this region, Sainsbury's had originally planned to have a store portfolio of 20 stores - they now have 15. "Morrisons is very strong in its Northern heartland".

Image: Officials of Sainsbury's and Asda group.

"Meanwhile, Sainsbury's premium own-label line "Taste the Difference" clocked up sales of £832 million annually - almost two and a half times the size of Asda's "Extra Special" range". There is, however, a significant overlap in Northern Ireland. GMB has warned that the combination could lead to job losses.

The two supermarket groups source between £250 million to £300 million from suppliers and producers in the North and South each year.

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Sainsbury's sales grew 0.2% year on year, while Tesco's grew 2.1%, Nielsen's data shows.

"The fear then was that a major merger would be bad for consumers". Walmart is reportedly in talks to buy a majority stake in Flipkart, India's leading e-commerce company, which would give it a foothold in an exploding online market.

The value of Mr Coupe's 1.28 million shares in Sainsbury's rose by nearly $1 million after the deal's announcement. Based on past experiences here, I have my doubts about this price promise.

Mike Coupe, the head of Sainsbury's supermarkets, was captured quietly singing, "We're in the money, the sky is sunny, let's lend it, spend it, send it rolling along".

Ostensibly, the merger is being presented as a great idea for both companies to take on Tesco, Amazon and the discounters in order to be able to pass on price savings to consumers.

"This is a cost play which will impact jobs in warehousing, distribution, stores, headquarters and suppliers".