Possible impact on customer perception due to acquisition: The case study on acquisition of Somerfield by Co operative Group in UK Market

This paper is aimed to identify the possible affect on customer perception level considering a case on acquisition between Somerfield and Co operative. Customer perception in retail industry depends on some foremost factors like location, brand proposition, customer service, price and quality, product availability etc. Merger and acquisition between/among different organization plays a role to affect the customer perception level. UK retail sales are around £300bn, the 3^rd largest in the world, after the USA and Japan. The retail sector also generates 8% of the GDP of UK, and 5.2% of GVA (BRC-Bond Pearce Retail Employment Monitor, Q4, 2010). Considering the importance of this particular sector, keeping the customer satisfied through building positive perception is the major and most crucial success factor to remain competitive in the market place. The study has considered three major hypotheses which indicate and shape up customer perception level. In the process different questions related to perception were asked to walk in customer and compared the result against the set hypotheses. It was found that there is significant evidence that the acquisition case has not created any negative perception rather positive in the view of most of the customers.