Sainsbury's strategy under scrutiny after Morrisons merger talks

Summarised from 2 outlets · Updated 16 Oct, 16:44 · Archive

Sainsbury's will update shareholders on Thursday as reports of merger talks with Morrisons fuel consolidation speculation.

Sainsbury's will shed light on its latest performance and strategy in a half-year update on Thursday 22 October. The supermarket giant is likely to face questions about reports that it considered a merger deal with rival Morrisons, while it also agreed the sale of its Argos arm.

Earlier this month, the Financial Times reported that Sainsbury's held talks with private equity-backed rival Morrisons – currently the sixth-largest grocer – earlier this year. The firms are no longer in talks over such a move, but the reports have ignited fresh speculation that Sainsbury's could pursue a takeover deal to accelerate growth.

Sainsbury's has reported resilient trading in recent years, focusing on price investments and customer loyalty. It holds a roughly 15.3 per cent share of the UK grocery market according to Worldpanel data, but remains significantly behind largest rival Tesco, which has a 27.9 per cent share. In 2019, Sainsbury's sought to merge with third-largest player Asda in a £7 billion deal to take on Tesco but saw the bid blocked by competition regulators.

How it is being reported

• Sainsbury’s strategy in focus after reports over Morrisons talksThe UK’s second-largest supermarket group will shed light on its latest performance and strategy on Thursday October 22.Evening Standard · 16 Oct, 16:18
• Sainsbury’s strategy in focus after reports over Morrisons talksThe UK’s second-largest supermarket group will shed light on its latest performance and strategy on Thursday October 22.Independent Business · 16 Oct, 16:18

In this story: Sainsbury's · Morrisons · Tesco · Asda · Financial Times

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