NEWS Sainsburys Asda merger blocked by CMA


The Competition and Markets Authority (CMA) has ruled that the proposed merger cannot go ahead, as UK shoppers would be “worse off” due to reduced competition in


the


market, with expected price hikes and a drop in quality. But Sainsbury’s accuses the watchdog of taking £1billion out of shoppers’ pockets. The deal had been in doubt since the CMA issued an earlier report suggesting it was faced with limited options, including ordering the two retailers - the UK’s second and third-largest


grocery chains – to sell off a “significant” number of stores to a suitable party, and potentially ditch


either the Sainsbury’s


or Asda brand. However, the CMA concluded that there is no effective way of addressing its concerns, other than to block the merger.


CMA inquiry group chair


Stuart McIntosh said: “It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week. Following our in-depth investigation, we have found this deal would lead to increased


Carpetright restructure restores confidence amongst customers


Netherlands. It’s good news for the retailer, which saw its performance dented by the ongoing recovery plan and said it expected trading to be heavily impacted by disruption, as it downsized its portfolio, closing around 65 UK stores.


The carpet and floorcoverings retailer


announced up “significantly”


sales in its UK operations were


LFL in


Q4, as customer confidence in the business started to return following the group’s restructuring last year.


In the financial update for the 12 weeks ended April 20, 2019, Carpetright said overall trading performance in the period was “in line with expectations”. As well as an upward sales trend in the UK, the retailer was pleased to report that trading in the rest of Europe has continued to track ahead of the same period last year, driven by a strong performance in the


Walsh said: “This has been a transitional year


Carpetright chief executive Wilf for Carpetright


and we remain on track both with our recovery plan and our strategic initiatives. The actions taken are driving improvement, particularly in the invested store estate, and the brand remains strong.


Whilst consumer


confidence remains challenged in the UK, the work we have done to reposition the business is starting to deliver the benefits necessary to put Carpetright back on the path to sustainable profitability.” Carpetright added that the


business remains on target to achieve previously-announced cash savings of £19million.


In a bid to further grow its commercial business, Topps has paid £3.3milion for 80% of the issued share capital of Strata Tiles Ltd, a supplier of tiles to the commercial market. The deal also provides options


to purchase the remaining 20% of the issued shares in Strata by 2021, which would cost Topps a further £2million, “subject to performance targets over a two- year period”.


agreement, Strata founders Jonathan Wiles and


Under the terms of the Paul


Wallis, who established the business in 2002, will remain with the company. Strata will


Outdoor plant sales rise in spring


The start of spring saw sales in outdoor plants soar at garden centres across the country, the Garden Centre Association reported. During March, outdoor plant sales were up 90.85% compared to the same month the previous year, in 2018, according to the Barometer of Trade (BoT) report.


GCA chief executive, Iain Wylie said: “Garden centres across the country have enjoyed a fantastic start to the spring season thanks to the milder days we’ve been experiencing, which have brought customers out and about in their droves to stock up on plants and products.


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“The weather has been very kind to us and we also had the added bonus of Mothering Sunday at the end of the month, when lots of families chose to pop to their local garden centre. “We’ve also seen great sales


in hard landscaping at 88.16% up, garden sundries at 58.53%


up and furniture and barbecue sales up 55.33%.”


Sales in seeds and bulbs were up 42.75% and houseplant sales were up 26.53%. Mr Wylie added: “It really gives everyone in the industry a bit of a boost when we see such great figures like this and with the recent Easter heatwave, we expect April’s sales figures to be even more impressive.”


Food hall and farm shop sales


were up 2.33%, gift sales were up 2.71%. The only department where sales were down was pets and aquatics at -0.06%. Overall sales for the month


were up 36.75% with a year to date change of 21.51%.


be integrated into Topps Tile Group’s Commercial business unit, established following the acquisition of Parkside Tiles in August 2017. The Strata brand will be retained. Topps plans to retain the Strata brand, which is a recognised and respected name in commercial tile supply. The company operates offices


in


Guildford and a showroom in Bermondsey and is a leading supplier


of quality porcelain,


prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers. As a result, Sainsbury’s


CEO Mike Coupe explained that Sainsbury’s, Walmart and Asda have mutually agreed to terminate the transaction but insisted the CMA was actually robbing shoppers of potential savings. He said: “The specific reason for wanting to merge was to lower prices for customers. The CMA’s conclusion that we would increase prices post- merger


ignores the dynamic


and highly-competitive nature of the UK grocery market. The CMA is today effectively taking £1billion out of customers’ pockets.” The CMA’s investigation found


that, as well as affecting in-store customers, the merger would result in increased prices and reduced quality of service, such as fewer delivery options, when shopping online. Furthermore, it would lead to motorists paying more at over 125 locations where Sainsbury’s and Asda petrol


stations close together.


Topps Tiles acquires controlling stake in Strata Tiles


are located


This final decision to block the deal follows the publication of the CMA’s provisional findings and a subsequent consultation period, during which the CMA reviewed


responses from a


variety of interested parties, including Sainsbury’s and Asda themselves.


Mr Coupe concluded: “Sainsbury’s is a great business and I


am confident in our


strategy. We are focused on offering our customers great quality, value and service and making shopping with us as convenient as possible.”


polished concrete, mosaics, natural stone


and technical


stone tiles for commercial design projects, with a core customer base within the architecture and design community. Key market segments include transport, retail, building cladding projects, university buildings and residential apartment blocks. Topps Tiles CEO Matthew


Williams said: “Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale. Strata is a well- regarded and well-run business with a strong brand; and we look forward to welcoming the Strata team into the Topps Group.” Strata’s latest financials show


a turnover of £4.8milliom for the year ended March 2018, with an unadjusted pre-tax profit of £700,000. The value of the gross assets that are the subject of the transaction is £1.5million.


Squires opens florist at Badshot Lea centre


Local florist Petal & Stem – run by a former Squire’s employee – has set up shop in a prime position just inside the entrance of Squire’s Garden Centre in Badshot Lea. Customers will now be able


to buy bouquets of cut flowers at the centre alongside Squire’s usual offer of seasonal plants and accessories for the garden. Petal & Stem has relocated


from its original site on Weybourne Road in Farnham and will be open Tuesday to Sunday within the Squire’s centre.


Lucie Saggs, who runs the business, is delighted to be back at Squire’s. She said: “I loved my time working at Squire’s and have been coming back regularly as a customer since I


left six


years ago. Having my own shop- in-shop here is perfect in so many ways – it’s wonderful to meet up again with so many of the same Squire’s customers, to welcome my own customers from Weybourne Road, and to be back working with the friendly Squire’s team. It’s like coming home! Squire’s is a great location with plenty of free parking, and strong footfall, which is so vital for a small business like mine.” Squire’s Garden Centres chairman Sarah Squire added: “It’s fantastic to welcome Lucie back to Squire’s in Badshot Lea; bringing a service that many of our customers have asked for. There is a natural synergy between a floristry and the plants that we offer.”


26 APRIL 2019 DIY WEEK 5


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