The Telegraph’s Ben Marlow suggests that the debt-fuelled takeovers of Asda and Morrisons has them badly prepared for grocers’ latest price wars. “Both have been left leveraged up to the eyeballs after succumbing to private equity buyouts financed by high-cost borrowings, leaving them less able to compete on price,” he said.
Read the full article on The Telegraph website
NAM Implications:
- Add the fact that Aldi & Lidl are capable (each being part of a big global enterprise) of running at a loss in the UK.
- For as long as it takes to optimise their share of UK grocery…
- …with limits on the ability of the mults to retaliate.
