Tesco has stated that it is still “working hard” to deliver on the scale and services of its Booker takeover, five years on from the initial deal.
At the time, Booker’s former CEO Charles Wilson said the UK’s largest retailer would help the wholesaler and other independent retailers with resources such as improved pricing, quality and availability.
However, other promised benefits – such as banking and mobile payment services – are yet to materialise.
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One of the major developments from Tesco’s ownership of Booker has been the rollout of its own-label range, Jack’s, into symbol stores.
Last year, Tesco CEO Ken Murphy suggested that the value-oriented range could help independent retailers “maintain their competitiveness” during the cost-of-living crisis.
Murphy also revealed that the Jack’s range is due to be extended further this year, following a successful rollout of more than 400 lines over the last two years.
Booker’s catering supply business took a major hit from Covid restrictions in the hospitality sector, however last week’s third-quarter and Christmas Tesco results showed the wholesaler had continued to bounce back from the effects of the pandemic.
The wholesaler’s like-for-like sales were reportedly up by 11.7% over Christmas, and 9.3% during the third quarter.
“Booker has had its best performance ever this year and that’s testament to the great value and availability that it provides its retail customers,” chief executive Ken Murphy said.
“That is in no small part due to being able to leverage Tesco’s scale,” he added.
“We’ve seen a great response from independent retailers. Most independent retailers I talk to say that value is first in their mind. Second is what we can do around banking services and more.
“These are areas we are working on, but what they’re really interested in is great availability and value.”
Asked whether further benefits can be delivered to retailers, Murphy stated: “We’re always looking to recruit and try to evolve the proposition to make ourselves more efficient. We will continue to evolve the Booker proposition.”
The news comes as Heinz is raising its prices for the second time in less than a year, following its public dispute with Tesco over passing increased production costs onto customers, despite the ongoing cost-of-living crisis.
