Budgens and Londis retailers are hoping that Boots’ new distribution agreement with Musgrave Retail Partners will raise awareness of the Supervalu brand and drive down their buying costs.
Under the new distribution agreement with Musgrave Retail Partners, Boots stores across the UK are to start stocking a wide range of convenience groceries, including Supervalu branded products.
Kent retailer Binny Amin, who owns a Londis store in Blean village near Canterbury and has just opened a Budgens in Whitstable, directly opposite a Boots store, said he had mixed feelings about the news.
“It’s great that the profile of Supervalu will be raised. People will try the products and realise how good they are, which will benefit me. The deal will also enable Musgrave to create scale, which could also drive down the cost at which Londis and Budgens retailers buy goods. However, my one worry is that if we are selling the same products as Boots, but at slightly different prices. Shoppers will question that, and it could be a problem. Not all Supervalu products are pricemarked,” he said.
Londis Etwall retailer Dee Sedani said that anything that improved shoppers’ awareness of the Supervalu brand was good news for him.
Three Boots stores have already begun stocking Supervalu goods including ready meals, vegetables and baked goods, with eight more set to join them in the coming month.
Small Boots stores will stock about 130 lines, while larger stores will stock more than 800.