Savings related to Tesco’s acquisition of Booker are ahead of schedule and are delivering benefits for Booker-partnered independent retailers, according to Tesco CEO Dave Lewis.
Newly released end-of-year results published by the supermarket show that Booker’s sales reached £5.8bn, with a 6% increase in profits.
At the same time, the wholesaler and Tesco achieved £79m in cost savings as a result of efficiency improvements and better buying.
The figure is £19m ahead of its targeted savings for the 2018/2019 financial year.
Lewis told RN: “We’ve invested some of those savings back into lower prices, more choice and better quality for Booker retail partners.”
The CEO added that the collapse of Palmer & Harvey had helped the firm to go beyond its savings target by using Booker’s network to supply tobacco to the Tesco network.
“We’ve got a situation where we deliver to One Stop and petrol forecourts through the Booker network, so actually there’s quite a lot of synergies between the groups there,” Lewis said.
The investment in Booker’s retail partners as a result of the synergies relates to Booker’s ongoing campaign ‘Bigger group, better for all’, which was revealed by RN last month.
It includes a discount tobacco club for its symbol partners, better quality Farm Fresh lines sourced via Tesco and reduced wholesale pricing on key fresh meat lines.
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