The British Independent Retailers Association (Bira) is calling for the UK’s competition watchdog to examine whether Tesco is using Booker to squeeze out small shops following its recent range review.
The Guardian had spoken to a number of independent retailers, who had accused Booker of putting pressure on them through its recent range review. The store owners told the publication the wholesaler had reduced availability at some of its depots by up to 30%, axing popular brands such as Yorkshire Tea, Rowntree’s and Colman’s.
The claims were put forward by the Guardian to Andrew Goodacre, the chief executive of the British Independent Retailers Association (Bira). Goodacre called on the Competition and Markets Authority to examine the issue and added he would be speaking to minister for small business Kevin Hollinrake about the problem.
Booker range cuts force retailers to rival wholesalers
Goodacre told the Guardian: “I think it’s shocking. This shows the worst of a large company bullying little shops. Communities want these small shops and these are not businesses making millions of pounds.”
Booker’s strategy to cut its “bloated range” was revealed by RN in February, with the firm promising to protect local lines and optimise the range for stores. However, the strategy was criticised by retailers, who accused Booker of favouring its catering customers.
Retailers also claimed the range review had made the criteria for Booker’s Spend and Save rebate scheme harder to hit, following an increase in qualifying thresholds.
Last month the firm also claimed it was improving delivered service for stores after boosting the capacity at its new distribution centre in Fareham. The site would serve retailers from its symbol and unaffiliated stores.
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