EXCLUSIVE: New Booker tobacco club promises 2% margin rise

New Booker tobacco club promises 2% margin rise
News RN Tobacco
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Booker has launched a tobacco club for its symbol group retailers promising a 2% margin increase on fast-selling lines. 

The scheme launched this week for Premier, Family Shopper and Londis retailers.

Store owners who successfully join the scheme are required to stock Players Real Red Superking, King Size and Crushball, alongside Gold Leaf 30g and 50g pouches, and Riverstone 30g bags.

Retailers must sell the products at RRP or below to receive the discount.

The discount level depends on the symbol group. The wholesale price for Londis retailers on the three Players lines has been reduced by £1.55, compared with £1.45 for Premier and Family Shopper store owners. 

Hitesh Modi, of Londis BWS in Chesham, was told by his retail development manager more tobacco lines will be added. “They’re my fastest-selling products, so the increase in margins is good,” he said. 

In return, retailers are required to pass EPoS data to tobacco suppliers.

Retailers were told about the tobacco club by post last week. 

Premier brand director Martyn Parkinson said in a letter sent to the fascia’s retailers the savings were a result of the Tesco merger. “Since Booker became part of a bigger group, we have been working to deliver the benefits of this relationship to our independent retail estate,” he wrote.

The letters were branded under a ‘Bigger group, better for all’ marketing banner. Londis retailers were also informed of changes to their own-label ranges in the letters sent to them.

The top 20 produce lines within the Farm Fresh range will meet the same specification as products with Tesco and One Stop branding. 

Wholesale pricing and RRP will be unaffected by these changes.

Elsewhere, the wholesale price and RRP on Discover the Choice 500g chicken breast fillets, chicken thighs and 500g beef mince will be reduced, and will result in a 5% margin increase.

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By Alex Yau Avatar
By Alex Yau 27 Feb, 2019

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