City & Business:Change at the checkout
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.J SAINSBURY has subtly changed in the couple of years since David Sainsbury took over running the family shop from his cousin John. First came the greater emphasis on value for money; then - shock, horror - a hostile contested takeover bid for Wm Low, a battle eventually lost to Tesco; then further expansion in the United States with the Giant Foods deal.
Now, if the rumours are correct, it is in negotiations to buy the do-it-yourself chain Texas Homecare from Ladbroke Group, or at least some of its stores. It's hard to see Sainsbury, which refuses to comment on the speculation, wanting some of the crummier Texas sites. Paul Rodgers assesses the impact of any merger on page 5.
Any combining of Sainsbury's Homebase with the Texas chain would be bound to destabilise the sector, which is not the healthiest even now. For starters, it would put pressure onW H Smith and Boots to come to some hard decisions about their ailing Do It All joint venture.
Sainsbury has recognised that the days of spending £700m or £800m a year on expansion of the core UK grocery chain are over. Saturation has been reached. Investment in new superstores would be tailing off anyway, even if the planning rules were not beingtightened up.
Without such a heavy investment programme, Sainsbury is starting to generate wads of cash. It either has to think about giving it back to shareholders, in the form of bumper dividends, or begin on a serious diversification programme.
Sainsbury is not alone. Tesco and Argyll, the owner of Safeway, face the same dilemma. These are interesting times for the supermarkets.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments