Wilson: Tesco merger will take retailers to "next level"

  • Print
  • Share
  • Comments (3)
  • Save

Booker chief executive Charles Wilson says that the proposed merger with Tesco will help independent retailers “go to the next level”.

Speaking on the day that that the £3.7bn merger was announced, Wilson said: “We serve 120,000 independent retailers including 3,300 Premier, 1,500 Londis and 140 Budgens stores - it is a privilege to serve these retailers, and this is an opportunity to continue to serve them better. Working with Tesco can let us go to the next level.

“Our retail customers are being hit with a number of issues such as business rates, National Living Wage, and auto-enrolment pensions and this is costing them at a time when business is difficult. With Tesco we can give them access to a range of everything they need, better quality, particularly in fruit & veg, and better service, because by combining the delivery fleets we can make sure that trucks spend less time driving around and more time delivering to stores.”

Wilson confirmed that under the merger proposal Booker would remain a distinct wholesale business within the larger group, and that existing Booker brands such as Farm Fresh would continue to be the labels used in independent stores, although utilising Tesco own-label contracts will result in a better quality and price.

Wilson maintained that retailer reaction had been “hugely positive” so far, adding: “We don’t hold retailers to contracts, we know we have to earn their business by showing them we can help them to prosper.”

The deal is subject to approval by both sets of shareholders and the UK competition authorities, a process which could take until the end of 2017 or even early 2018. In the meantime, it is “business as usual”, said Wilson, with synergies from the Musgrave acquisition in 2015 expected to be fully realised by the time the Tesco merger completes.

Readers' comments (3)

  • Charles Wilson is so right stating taking this to the next level , a must in our retail sector.

    Unsuitable or offensive? Report this comment

  • Charles Wilson is proud that Booker doesn't hold retailers to contracts. Tesco-owned One Stop does. Maybe shouldn't have emphasised that point Charlie.

    Unsuitable or offensive? Report this comment

  • anyone thinking with Tesco buying out booker that you are going to get better margins are mistaken, as own both a one stop store and booker premier and the margin offered by booker are superior than one stop. my premier store gets the milk the same price as what tesco owned one stop gets for there one stop franchisees.

    only thing that one stop gets cheaper is the warburtons bread. thats it.

    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

  • Charles Wilson
  • Print
  • Share
  • Comments (3)
  • Save

FOLLOW US