UK Supermarket Sector Braces For Expected Consolidation Trend

In the UK, the supermarket sector is expected to see a merger trend involving some of the market’s largest operators. Several factors are forecast to drive this trend, including the drop in market valuations of leading supermarket chains, which has made UK chains cheaper compared with their European counterparts. For example, Tesco’s shares have declined 66 percent; Sainsbury’s, 38 percent; and Morrison, 44 percent. Tesco’s size makes it unlikely to be part of any merger deals; however, a deal involving Morrison and Sainsbury’s is more probable.