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Sainsbury’s response to Amazon’s entry into the grocery business

20 June 2017

So, hot on the heels of the news yesterday about Amazon’s acquisition of Whole Foods, we have Sainsbury’s looking at an aggressive expansion plan with its proposed acquisition of Nisa. This follows Sainsbury’s decision last summer to close its Netto stores after abandoning a joint venture with a Danish retailer. We’re just waiting for confirmation now that an exclusivity agreement has been put in place between Nisa and Sainsbury’s which should keep the other competitors from the door for a few weeks/months. It will then come down to whether the group of Nisa’s shopkeeper members decide to forego relative independence for the hope of extracting increased business from a known big brand. From Sainsbury’s side, it looks as though the convenience grocery business continues to be a draw and a focus for them. Interesting times ahead.

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