FWD chief expresses concern over Sainsbury-Asda merger

The Federation of Wholesale Distributors’ chief executive James Bielby (pictured) claims that the proposed merger between Sainsbury and Asda will increase prices for smaller stores.

He believes that reduced costs which the retail giants say would occur would actually raise prices for independents and lessen choice in their locality.

Bielby talks about a ‘waterbed effect’, which would mean reduced prices for some shoppers and higher ones for others.

There could be a “massive disortion in the market” placing an “unfair burden” on smaller shops and the C&C/wholesalers supplying them.

Bielby commented: “Independent shops thrive on a mix of great service, tailored product offers and a fair price. They make a vital contribution, both socially and economically. Disadvantaging them so that huge supermarket chains can compete with Aldi and Lidl would be a step backwards.”

Tel: FWD (01323) 724952


Published Date: June 8, 2018
Category: Wholesale Industry News