MFG to switch its network of Spar sites to Londis or Budgens

  • Print
  • Share
  • Comments (6)
  • Save

The Motor Fuel Group (MFG) is set to rebrand 110 of its forecourt stores from Spar to Londis or Budgens, following an extension of its supply agreement with Booker Retail Partners (BRP).

The move will also see MFG, which formally merged with MRH in November 2018, rebrand all of its Hursts-branded stores.

MFG, which is currently the UK’s number one forecourt operator in terms of number of sites, signed its first agreement with BRP in May 2016.

The new store supply contract will see BRP supply the entire network of 925 stores, with MRH’s Spar stores to be rebranded first.

MFG retail director Paul Dennis said: “After nearly three years of successful Booker shop supply, we are delighted to be continuing our relationship to cover our enlarged network.

“We believe Booker’s promotional programme and Spend & Save rewards have already added significant benefits to over 800 of our forecourt retailers. In addition to rebranding the Spar stores, it is our intention to also replace the Hursts brand.

“We are confident that moving to Londis and Budgens will help drive additional footfall through our stores and enhance the customer shopping experience.”

Booker Group retail managing director Steve Fox added: We are delighted to extend our partnership with MFG.

“It is a privilege to serve them and this extension to our existing agreement is a fantastic opportunity for Booker Retail Partners to build on our already successful partnership.”

 

Readers' comments (6)

  • Surprised that a retailer with 925 stores relies on the Spend and Save rewards programme. That amount of buying power should allow them to negotiate a better deal than that available to all Booker fascias.

    Unsuitable or offensive? Report this comment

  • MFG service stations are run by Contract Managers/Commission Operators, who run the stores, buy the stock, pay the bills and employ staff.

    MFG negotiate prices with their supplier, Booker, which the independent retailer operating the store must use. They get charged a higher price, while MFG pocket the difference. Most of their Commission Operators won't even be aware, as officially they have to pay MFG a percentage of their profit, but MFG already gets a cut of the sales from commissions paid by Booker. This is how Motor Fuel Group has done so well and now owns more UK filling stations than any other company. Malthurst operated in the same way along with others like Rontec.

    It's a dire situation for the Commission Operators as they can be given three months notice and they're out the door, along with the staff they employ. If they make a success of the site, MFG will move the goalposts and demand a bigger cut of the profits.

    Unsuitable or offensive? Report this comment

  • At the end of the day,spar are always that little bit more expensive than premier /budgens/londis....this deal significantly increases footfall into these convenience forecourts

    Unsuitable or offensive? Report this comment

  • Ex Tesco man Sir Terry Leahy is on the board of directors of Motor Fuel Group so it's no surprise they've decided to use Booker as their sole grocery supplier.

    Unsuitable or offensive? Report this comment

  • This is what happens when capitalism is left to get out of control. Companies gobble up their competitors and then have too much buying power. Things will only get worse.

    Unsuitable or offensive? Report this comment

  • It’s sad to see the new enlarged MFG will be dropping Spar completely. After its deal with Costcutter ended, MFG previously converted a handful of its forecourt convenience stores to Morrisons Daily and MRH converted a handful to Co-op Food (before the Nisa Local takeover). Neither trial lasted long. All MFG forecourts have been trading as either Londis or Budgens for a couple of years now (none use the Premier Stores brand). MRH converted a handful of shops to Budgens after a deal with Booker was struck to supply their own Hursts branded stores. I find it hard to believe how the retail landscape can change so quickly.

    Unsuitable or offensive? Report this comment

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory

Related images

  • MFG LONDIS STORE
  • Print
  • Share
  • Comments (6)
  • Save

FOLLOW US