Research into merger between Celesio & Sainsbury’s pharmacy Research into merger between Celesio & Sainsbury’s pharmacy

Market research published report:
Research into merger between Celesio & Sainsbury’s pharmacy

Competitions & Markets Authority (CMA)

DJS Research was appointed by the Competition & Markets Authority (CMA) to conduct interviews with pharmacy customers in Lloyds and Sainsbury’s stores, in order to understand the potential impact of a merger between these two parties, this report details the findings of this research.

The CMA work to promote competition for the benefit of consumers. Their aim is to make markets work well for consumers, businesses and the economy. As part of this role, the CMA is responsible for investigating mergers which could restrict competition. The CMA is currently investigating the anticipated acquisition by Celesio of Sainsbury’s pharmacy business.

As part of this investigation, DJS Research was appointed to conduct interviews with a sample of Lloyds and Sainsbury’s customers, to understand the potential impact of the merger. This report details the findings of these interviews with Lloyds and Sainsbury’s customers. As part of the analysis, we applied significance testing at a confidence interval of 95%.

The specific objectives of the research were:

  • Understand the purchasing behaviour and characteristics of Lloyds and Sainsbury’s pharmacy customers.
  • Understand the reasons why consumers use different pharmacies.
  • Understand the diversion ratios and how these vary depending on local market characteristics.
  • Identify the appropriate area over which competition takes place between relevant pharmacies.