Tesco has identified the Jack’s own-label range as a key area to help independent retailers support and maintain customers during the cost-of-living crisis.
Speaking during a presentation on the supermarket’s financial results for the six months ending 31 August, Tesco chief executive Ken Murphy referenced the challenges of the cost-of-living on the retail sector.
Asked by Better Retailing how this would impact Booker stores, Murphy said: “Booker has performed exceptionally during the first half of the year and it will continue to do so. Our independent retailers are brilliant because they’re true entrepreneurs so close to their communities.
“They’re responsive to changes in customer needs and we’ll support them. That will sustain Booker’s performance in the market.
“Independent retailers were clear that they wanted an own-label proposition that is credible and strong in both value and quality. The Jack’s brand does that for them – we’re very pleased with it and it will work well in the current environment.”
Shops switch from Booker to rival wholesalers over Jack’s own-label range
During the period, Booker opened 195 Londis, Budgens and Premier stores. Commenting on the reason behind the growth in store numbers, Murphy added: “Independent retailers are switching to the Booker banners. They’re not new retailers in terms of opening new shops, but they’re new to the Booker franchise family.
“Retailers are seeing the quality of the Booker proposition and independents are attracted to it.” In comparison, One Stop opened five stores during the period. Explaining the difference with Booker symbol store openings, Murphy said: “This is a net figure and as some One Stop stores mature, they will become big enough for the Tesco Express format.
“We’re really pleased with One Stop’s performance and the unique job it does at the heart of local communities.”
In a separate presentation with market analysts, Murphy said the wholesaler had opened “two retail hubs to absorb more of our retail trade and create space to grow even further in catering”.
He added: “We feel really optimistic about the future for Booker. We think it’s going from strength to strength. We think people will still want to celebrate this Christmas and we know that Booker is probably the best-placed wholesaler to support the industry.”
The results revealed that total Booker sales during the six-month period reached £4.4bn, a 13.9% like-for-like annual increase. The wholesaler’s retail arm made up more than half of total sales at £2.4bn, a 2.2% like-for-like rise.
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