Independent retailers are divided over Tesco’s plans to supply 30 rebranded lines of its own-label products into Premier, Londis and Budgens stores by the end of July.
Paul Gardner, of Budgens in Islington, told RN the plans would help boost fresh and chilled categories he has been developing. “This is really good news and I’ll know the products will be of high quality if they were originally Tesco own-brand.
“It’s a good decision to rebrand them because I have two Tescos nearby and customers would get confused otherwise.”
However, Narendra Singh Jadeja, of Londis in Waltham Forest, said he would prefer Tesco-branded stock instead.
“There’s a danger the products will be lost among my existing stock and I think the Tesco brand will be more noticeable on shop shelves.
“We have a Tesco nearby, but 30 lines isn’t enough to confuse customers.”
The latest development in Tesco’s £3.7bn takeover of Booker, which was completed in March, was confirmed at the company’s financial briefing in London last week.
Tesco UK & Ireland head Charles Wilson, who left his role as Booker boss last month, said the lines will comprise of products across fresh, chilled and bakery categories.
He said, “Tesco has got a range of fantastic products, but we don’t want to take the brand into Booker stores. They will be repackaged to suit each independent fascia and retailers can expect them in the next 60 to 90 days.” Pricing for the products is to be confirmed.
Tesco chief executive Dave Lewis, who also spoke at the briefing, said: “The team has identified several Tesco products in fresh and chilled which we believe Booker customers will find appealing, such as ready-made mashed potatoes.
“There’s definitely a lot we can do and we want to get off to a fast start.”