Following CMA’s final decision to block the merger in May last year, JD Sports has appealed to the Competitive Appeals Court, which sent the case to CMA for retrial.
The UK Competitive Markets Authority recently stated that the merger of JD Sports and Footasylum could result in worse deals for Footasylum shoppers. This means that customers may face higher prices, fewer discounts, and fewer product choices. According to the official release, the merged company may be less invested in improving customer service.
The CMA reached the latest conclusions after collecting extensive additional evidence of the impact of the COVID-19 pandemic and other developments in the sports fashion sector.
CMA’s view at this stage is that blocking transactions by requesting JD Sports to sell Footasylum may be the only way to address these competitive concerns.
“We have collected a significant amount of additional evidence, including the effects of the coronavirus, since the initial investigation, but there are still concerns about JD Sports’ takeover of Footasylum. The deal acquired Footasylum by its closest competitor. As a result, shoppers can be more expensive, have fewer choices, and have a worse overall shopping experience, “said KipMeek, chair of the group that conducted the survey.
While many stores closed during the closure, online sales in this market are stronger than ever, and as people return to High Street, revenue from in-store sales is recovering.
The CMA has sought the views of the sector’s JD Sports, Footasylum and others on the tentative decision and proposed remedies.
Fiber2Fashion News Desk (DS)
The merger with JD Sports may be worse for Foootasylum shoppers: UK CMA
Source link The merger with JD Sports may be worse for Foootasylum shoppers: UK CMA