Tesco’s Booker buy benefiting convenience stores

Tesco’s Booker buy benefiting convenience stores
News RN Tesco Booker
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Savings related to Tesco’s acquisition of Booker are ahead of schedule and are delivering benefits for Booker-partnered independent retailers, according to Tesco CEO Dave Lewis.

Newly released end-of-year results published by the supermarket show that Booker’s sales reached £5.8bn, with a 6% increase in profits. 

At the same time, the wholesaler and Tesco achieved £79m in cost savings as a result of efficiency improvements and better buying.

The figure is £19m ahead of its targeted savings for the 2018/2019 financial year.

Lewis told RN: “We’ve invested some of those savings back into lower prices, more choice and better quality for Booker retail partners.”

The CEO added that the collapse of Palmer & Harvey had helped the firm to go beyond its savings target by using Booker’s network to supply tobacco to the Tesco network. 

“We’ve got a situation where we deliver to One Stop and petrol forecourts through the Booker network, so actually there’s quite a lot of synergies between the groups there,” Lewis said.

The investment in Booker’s retail partners as a result of the synergies relates to Booker’s ongoing campaign ‘Bigger group, better for all’, which was revealed by RN last month. 

It includes a discount tobacco club for its symbol partners, better quality Farm Fresh lines sourced via Tesco and reduced wholesale pricing on key fresh meat lines.

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By Jack Courtez Avatar
By Jack Courtez 17 Apr, 2019

Comments

1 comments
  • By alex jones 11 May, 2019
    Reply

    this is not the case the reason they have seen an increase in sales is due to there primary competition palmer and Harvey going bust. I work and Help Run a family owed store and the only things we have seen is an increase in out of stock items that i might ass seem to be in stock in every express store which booker deliver too, and a decrease in profits due to an increase in price marked packaging and increase in cost meaneing a steep decrease in our profits. I would also like to note that we are now buying stock from Tesco to sell as it is a lot cheaper than there wholesaler side.

Have you seen a boost in own-label products in the past year?

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