From fears about job losses to a view of two businesses trying to ‘future-proof themselves’
Rebecca Long-Bailey, Labour’s shadow business secretary:
A Tesco/Sainsbury’s-Asda duopoly [would have] unrivalled power to dominate, dictating choice and prices for consumers … [It also] poses immense risk to suppliers, with unprecedented bargaining power to drive suppliers’ prices and payment terms down.”
Hundreds of thousands of workers stand to be affected and all know such announcements tend to be followed by management speak like ‘rationalisation’ in the name of ‘efficiency’. What that usually means is job losses or cuts to pay, terms and conditions.”
[These are] two businesses trying to get ahead of the curve and future-proof themselves in a very challenging market.”
Ultimately there has to be job losses and the suppliers will have to pay through lower prices for the larger volumes they may see. Customers will see reduced choice and the current price war is likely to persist.”
Increased competition from Aldi and Lidl is the main motivation behind the proposed deal. The deep-discounters have disrupted the UK supermarket sector severely.”
Those at the top of Sainsbury’s and Asda should give reassurance that cost savings won’t be achieved simply by milking their small suppliers for all they’re worth.”
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