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Asda Becomes No 2 UK Supermarket Ahead Of Sainsbury’s


04/02/2019


Asda Becomes No 2 UK Supermarket Ahead Of Sainsbury’s
Data from the retail industry of the United Kingdom has shown that for the first time in the last four years, the position for the second largest retailing chain in the country has been taken over by Asda by edging out Sainsbury’s in terms of market share. Asda has been targeted by Sainsbury7’s for a potential takeover. The entire industry on the overall has been lagging behind compared to earlier months.
 
Research firm Kantar said that over the 12 weeks to March 24, there was a drop of 1.8 per cent in the sale of Sainsbury's which brought its market share down to 15.3 per cent for the period compared to 15.8 per cent market share achieved by the company in the same period last year.
 
That resulted in the market share of the British arm of U.S. retailer Walmart, Asda, going past the market share of Sainsbury’s. Asda had a market share of 15.4 per cent as the company’s market share rose by 0.1 per cent in the same period. 
 
Among the two sellers, Sainsbury's remained the biggest seller of food and drink because the figures did not include the Argos general merchandise business it acquired in 2016, Kantar said.
 
Currently the proposed acquisition of Asda by Sainsbury's in a deal worth 7.3 billion pound or S$9.5 billion is being considered by the competition regulator of the UK.
 
In the case that Sainsbury’s doe4s not agree to sale a large number of the combined stores of even one of the brands, it might not be possible to allow the deal through, said the Competition and Markets Authority (CMA) last month while expressing its view. A final report is due by April 30.
 
During the period under consideration, sales of T increased by 0.5 per cent according to data from Kantarand it still remained a very clear market leaders in the industry with a total market share of 27.4 per cent. On the other hand, there was a drop of 0.1 per cent in the sale of the fourth largest retailer of eh UK - Morrisons with a market share of 10.3 per cent.
 
German-owned discounters Aldiand Lidl however continued to increase their market share taking away share from the so called "big four" supermarkets of Britain. There was an increase of 10.6 per cent and 65.8 per cent in the sale of these two companies respectively and together they have a combined market share of 13.6 per cent.
 
(Source:www.channelnewsasia.com)


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