Tuesday 2nd April, 2019
Sainsbury's and Asda have submitted to the Competition and Markets Authority (CMA) commitments to pay small suppliers promptly and lower prices for consumers as part of the proposed merger.
Although both supermarkets have already committed to prompt payment, Sainsbury’s has announced that it will move to pay small suppliers (turnover with the business of under £250k) within 14 days.
Asda will continue to pay its small suppliers within 14 days, in line with existing commitments.
Cost savings would be created by “securing lower purchasing prices from suppliers, predominantly by paying the lower of the two prices that Sainsbury's and Asda currently pay large suppliers for identical products”, the supermarkets said.
Sainsbury's Chief Executive, Mike Coupe and Asda Chief Executive, Roger Burnley said: "We are trying to bring our businesses together so that we can help millions of customers make significant savings on their shopping and their fuel costs, two of their biggest regular outgoings."
The CMA is due to publish its final report and decision on whether the merger can go ahead on 30 April 2019.