With job losses and closures rampant on the high street, this huge sell off would disastrous for consumers, employees and local communities. Says GMB Union
GMB, the union for ASDA workers, has hit back claims from the City the supermarket’s merger with Sainsbury could ‘absorb’ the sell off of 132 stores.
UBS, Sainsbury’s house broker, has even disposing of 132 stores ‘and potentially dozens more’ the merger could still achieve ‘targeted return on invested capital of more than 10 per cent’.
Meanwhile Bank of America Meryl Lynch added ‘even a high disposal number would not be a risk to the deal.’
The Competition and Markets Authority has highlighted 463 locations where the two brands overlapped and posed a “realistic prospect of a significant lessening of competition”.
Gary Carter, GMB National Officer, said:
“GMB believes the sell off of 132 would be disastrous for consumers, employees and local communities.
“Asda and Sainsbury’s say they’re committed to keeping open all their stores.
“But with job losses and closures rampant on the high street , realistically which retailers are going to take on these size premises?
“The CMA needs to take account of the current retail climate where the move from high street to online is having a dramatic effect.
“Consumer and business confidence is at a low and 70,000 retail jobs went in the last quarter of 2018.
“If 132 is the number CMA have in mind they leave consumers with less choice, cause large scale redundancies and leave local communities stripped of stores and jobs.
“GMB will not sit by and let stores and jobs go to the wall. “