Kidswear in spotlight as Sainsbury's-Asda merger probe deepens
The merger, which GlobalData said could potentially create a general merchandise “powerhouse”, is the subject of a Competition and Markets Authority (CMA) in-depth investigation and it will look at whether competition in the childrenswear market will be harmed by the combination of two of the UK’s ‘big four’ supermarket chains.
Asda is a major force in kidswear via its George label and earlier this month GlobalData also said that it, along with rival Tesco, were major beneficiaries of back-to-school season spending.
And Sainsury’s Tu Clothing label is also growing fast with a major kidswear range as part of its offer.
The proposed merger is part of the CMA’s more in-depth Phase 2 study at the moment that is taking in fuel, toys, certain electricals, groceries and kidswear including school uniforms.
The latest phase of the probe will also look at non-grocery chains that sell kidswear, online retailers and budget supermarket rivals such as Aldi and Lidl that have been increasing their clothing offer generally in recent periods.
The aim is to decide whether competition will be hurt and whether that could mean higher prices and lower quality. A decision is expected by next March.
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