The Sainsbury's-Asda merger would create a new rival for Tesco
There are no clear details about the amount that sits behind the merger of Sainsbury's and Asda but this move would certainly increase the competition in the UK's seafood retail sector.
Despite a decrease in the volume of sales, last year, the British seafood market has grown in value by 4.1% reaching a total of £3.3 billion (€3.7 billion/$4.5 billion), according to a Nielsen report quoted by Intra Fish portal.
The biggest market share in this sector is held by Tesco (23.1%) followed by Sainsbury's (15.1%), Aldi (9.7%), Morrisons (9.1%), Asda (8.0%) and other players. The simple math indicates that a merger between the second and the fifth player in this market will create a competitor with the same market share as Tesco's.
Following the same logic, it looks like the competition will be interesting to watch as the rivalry goes on equal footing in the chilled seafood sector and it gives Tesco an advantage of 2.7% on frozen seafood sales while a Sainsbury's-Asda merger will have a plus of 3% in the ambient seafood market.
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