PLANS for supermarket giants Asda and Sainsbury’s to merge have been welcomed by shoppers in Bournemouth.

They hope the merger will lead to price cuts and more choice for shoppers.

Sainsbury’s boss Mike Coupe has pledged the deal will not lead to job losses or store closures.

But there are fears the Competition and Markets Authority could force companies to sell off stores if the new giant is dominant in a particular area.

The two supermarkets will retain their individual identities but as second and third largest supermarkets in the UK, the merger would give them a whopping 31.4 per cent of the market compared with currently leader Tesco’s share of 27.6 per cent.

The merger would also see branches of Argos - taken over by Sainsbury’s in 2016 - popping up in Asda stores.

There are many Sainsbury’s stores in Dorset including large stores at Ferndown, Poole town centre, Alder Hills, Boscombe and Christchurch. There are two Asda stores in Bournemouth and two in Poole.

Castlepoint shopping centre has as Asda, a Sainsbury’s and an Argos and could be one of the areas affected if the Competition and Markets Authority takes action.

Shoppers there said they hope prices at both shops will come down but said they believe there is room for both of them.

Sue Naylor from Bournemouth said: “The two shops are very different so I don’t think there will be an issue. I prefer the food in Sainsbury’s but Asda is definitely better value - perhaps some of the value will rub off on Sainsbury’s.”

David Elliott from Highcliffe said: “I usually shop in Sainsbury’s in Highcliffe and I think it would be a very good thing if the prices came down. I would not be tempted to shop in Asda - I think people stick with what they know.”

And Ellen Wade from Moordown added: “I hope it doesn’t mean the prices will go up in Asda because I have been shopping there for years. I don’t think the other supermarkets should be worried because they all have a different identity.”

Shares in Sainsbury’s jumped 16 per cent in response to the merger news. Walmart, which owns Asda, will retain 42 per cent of the combined business.