The planned merger of Sainsbury’s and Asda, announced at the end of April, could have significant repercussions for the value fashion sector.
Both are big players in the clothing market: Asda ranks fifth by value with 3.5% market share and Sainsbury’s 15th with 2.1%, GlobalData reports.
Sainsbury’s CEO Mike Coupe said the merger – if approved – will create a “dynamic new player”. He insisted there is space for both Sainsbury’s Tu and Asda’s George to continue as separate brands.
Nick Jones, who was promoted to senior vice-president on Asda’s executive board in May, has been driving improvements at George.
Although Asda does not break down sales for the clothing brand, it has been doing well in the style stakes: an on-trend £14 leopard print midi-skirt caught the eye of influencers and quickly sold out this autumn, as did a £16 long-sleeved animal-print dress.
Behind the scenes, George has introduced “flexible payments” for products bought on its website, allowing customers to spread the cost of their purchases.