Quote:
Originally Posted by General Maximus
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.
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Is this a serious business propostion General?
As regards logistics (store supply) ASDA is far bigger than Sainsburys and is ideally placed to take over anything Sainsburys have.
As regards stores, in the area I live there are at least 4 ASDA stores 3-4 times larger than anything (of the 2 I can think of) Sainsbury have.
Of the Sainsburys store and the ASDa one where I live if any store closes it will be the Sainsburys one first because it is not in the correct area of town for maximisation of trade but it's also so small compared to the ASDA store and Morrissons both of which are about 3 miles away but near each other. My Sainsburys is stuck up a side road with no other retail outlets near it. That was good planning.