Quote:
Originally Posted by RichardCoulter
I wonder if they mean combining their purchasing functions, distribution etc to increase their buying power and achieve economies of scale, rather than the actual stores themselves?
|
It is about consolidating costs. Asda will be absorbed into Sainsburys with Walmart becoming a major shareholder in Sainsburys. All Asda stores and depots will close which will shift the sales and revenue to Sainsburys whilst at the same time saving hundreds of millions of pounds in operating costs for Asda. No more staff wages, no more utility costs for the stores, no equipment costs for the logistical side of things etc. The sad thing is that I imagine everyone at Asda will be made redundant as I see no reason why any of the staff would need to be migrated to Sainsburys. The store where I live is massive and the current space given to all the products means that they never sell out during the day, even if sales doubled due to Asda closing (which is 1 mile down the road). They might need to take a couple of extra night staff on to cope with the increased volume of stock coming in but that is it.