Sainsbury, Wal-Mart's Asda held talks over possible distribution collaboration

LONDON (AFX) - J Sainsbury PlC and Wal-Mart Stores Inc's Asda, two of Britain's biggest rival supermarket chains, have held exploratory talks about collaboration on a distribution centre, according to the Sunday Times, citing an interview with Asda's chief executive Andy Bond.
The report says initial talks centred on a 'consolidation centre' where branded goods are stored before being transferred to distribution centres.
The Sunday Times said talks between Asda and Sainsbury took place last summer.
Sainsbury suggested a location in the north of England, but Asda's immediate requirement was for the Midlands, so discussions have not progressed.
The paper says Sainsbury has acknowledged the talks took place but played down their significance, while Asda insists the proposal is still a live idea.