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Should Tesco be allowed to buy food wholesaler Booker?

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Should Tesco be allowed to buy food wholesaler Booker?

Post by boatbuilder » Fri Jan 27, 2017 10:33 pm

With the announcement that Tesco are to buy the UK's biggest food wholesaler 'Booker Group' who are suppliers to thousands of smaller independent retailers including those trading under the Budgens, Premier and Londis banners, as well as thousands of pubs and restaurants, do you think this will be a good or bad move for the food retailing/catering industries?

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Re: Should Tesco be allowed to buy food wholesaler Booker?

Post by frankiesays » Sat Jan 28, 2017 9:47 am

It is Tesco trying to increase the size of their empire. I'm sure the CMA will study it carefully before allowing it. All those convenience stores are privately owned and merely subscribe to the buying group with the idea being that products can be bought much cheaper collectively and therefore give those stores a chance to try to compete with the big multiples' stores. Convenience stores will always be more expensive by comparison because they can't really compete with the big boys which is why convenience stores cater mainly for "distress purchasing" which is generally the things you forgot to get at the supermarket or the thing you need urgently which isn't worth a trip to the supermarket for or it is out of hours but the convenience store is still open.

Tesco will have to look after those store owners if they want to keep that part of the business going but the worry to those who are currently part of the buying group would be that if they are currently competing with a Tesco owned convenience store (Express, Metro or One Stop) then will they be charged a higher price than their fellow members to make them noncompetitive. I would have thought that Tesco have much bigger buying power than the Booker/Londis regime anyway which could be a good thing for the current members. I think they'll have to suck it and see, we could see a lot of convenience store fascias changing colour in the near future.

Maybe Tesco will start offering the Tesco Express and One Stop fascias as a franchise?
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