[quote quote=148355]They gave approval for Tesco and Bookers to merge and Tesco has a bigger market share than Sainsburys and Asda combined. It just seems an odd fit, will Sainsbury move their prices down or Asda up ?[/quote]
I think if you look at like-for-like items the prices will be very similar to each other* and it is these “everyday value” items that they will be looking to use their increased bargaining power to reduce. Although, after this initial benefit it’s quite likely that longer term, the reduced competition will actually increase prices for consumers. Hopefully this will be the catalyst for Amazon to break into the UK grocery market in a big way which will be a disruptor in the market to drive prices down.
* Sainsbury’s seems more expensive because the have more tempting luxury items at higher prices which increases the price of your shop.