With the writing on the wall for Sainsda, what now?
So long, then,
Higher prices. Reduced quality and choice. Worse shopper experience both in-store and online. Less competition at the pumps. And a list of suggested remedies so punitive as to be
Which means UK grocery is quickly having to move on to the next big question: now what?
Because while Sainsda may be dead in the water, the underlying market dynamics that prompted the UK’s second and third-biggest grocers to want to join forces haven’t changed.
The threat of the discounters is as alive as ever. Growing online competition from the likes of Amazon looms large. And an emboldened Tesco-Booker is flexing its muscles.
Once the dust settles on this week’s news from the CMA, Sainsbury’s and Asda will be under pressure to outline what – if any – alternative plans they have to address these challenges now that a merger is likely off the table.
For suppliers, many of which breathed a collective sigh of relief on Wednesday, this means the uncertainty is far from over. It only took a few hours for rumours of
‘The new reality’ of the rapidly changing UK grocery landscape isn’t going anywhere. It’s simply entering a new – and possibly even less predictable – phase.