Monday, 30 April 2018

Sainsbury's, ASDA WalMart and Morrisons

The news is that supermarkets ASDA and Sainsbury's are looking to merge.  Lots of reportage discusses how they will look for efficiencies, and improved leverage over suppliers (presumably to match Tesco).

According to industry stats here the combined ASDA/Sainsbury will have a larger market share than Tesco (30% compared to 28%) but after required divestments that may mean they are of very comparable size.

 The question is  - What next for Morrisons?  Currently in 4th place with 10% they will automatically go up to 3rd, but be a third of the size of the two big supermarkets.  This is stick or bust time I suggest.  They could pick up retail units that ASDA/Sainsbury have to relinquish to please the authorities.  But do they then go all out to get to, say, 15% share?  OR do they stay where they are and hope to fend off Aldi on 7%?

I live in the home of Morrisons, Bradford, and would hope they go for growth, but part of me thinks that a better deal would have been for ASDA to take over Morrisons - roughly comparable market positions, whereas ASDA and Sainsbury now bracket Tesco in brand proposition.  Maybe that is the idea - leave Tesco no where to go either upmarket or downmarket.  But what do Morrisons do? Stick or Twist?

Monday, 23 April 2018

Procurex North - Manchester 24th April 2018

Tomorrow is Procurex North in Manchester at Manchester Central (which is part of the G-Mex complex).  Free to people working in the public sector.  Details here.

In the afternoon I am talking in the Winning Tenders Zone - so you can adapt your plans accordingly (listen or avoid).

There are a lot of good speakers during the day - especially in the Keynote Arena.  

Hope to see you there.