Sainsbury’s Go Shopping at Asda

Sainsbury’s are reportedly preparing a £10 billion takeover of Asda, subject to approval from the Competition and Markets Authority.

Should the merger go ahead, the new company would be the largest group of grocers in the UK, with a market share of 26.7% (taking them ahead of Tesco on 25%).

The traditional supermarket leaders have seen increased competition in recent years, with the likes of Lidl and Aldi increasing their market share and Amazon moving further into the grocery sector.

Though “safety in numbers” is a tried and trusted method of warding off new threats, the real challenge for the traditional supermarkets is going to be how well they adapt to the changing needs of consumers – something the likes of Amazon will be ready to deliver on.