Tuesday, 22 March 2016

Sainsbury’s Confirms Offer for Home Retail - the next steps and imlications

News that Sainsbury’s moved a step closer to sealing the takeover of the Home Retail Group/Argos on Friday, by tabling a formal offer for the business after rival bidder Steinhoff International pulled out, raises a number of implications...

NAM Implications:
  • Whilst as yet, there is no obviously sign of an amply-proportioned lady vocalist preparing to take centre-stage, this looks like a done-deal...
  • Obviously the competition authorities will play their part - delay & distraction - but management’s immediate focus has to be on squeezing costs and generating synergies from the mix…
  • This has to result in well-heralded store closures - otherwise why bother to acquire - and if this means 300 Argos being transferred into nearby space-to-spare Sainsbury’s branches, so be it
  • Ultimately, the Sainsbury’s-Argos combination has to perform better than the separate entities
  • ...meaning opportunities for visionary suppliers


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