retail news in context, analysis with attitude

• The BBC reports that in the UK, the Competition and Markets Authority has said that it will take into consideration the steady growth in market share achieved by discounters Aldi and Lidl, as well as the impact of online retailers such as Amazon, when it evaluates the advisability of Sainsbury’s planned merger with Asda.

The Sainsbury-Asda deal would create the UK’s largest grocer.

The BBC also points to the rationale behind the merger: In the most recent quarter, the story says, “Aldi and Lidl increased sales by 15.1% and 10% respectively compared with the same quarter last year. Aldi's growth was its fastest since January last year and helped it to a market share gain of 0.8 percentage points to 7.6%, while Lidl's share was slightly up at 5.6%.

“Tesco, the UK's biggest supermarket, saw its market share fall 0.6 percentage points to 27.4% despite sales rising by 0.9%. Sainsbury's was down 0.4 points compared with the three months last year at 15.4%, while Asda dropped 0.2 points.”
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