Booker has confirmed its commitment to serving four retail formats following the successful acquisition of Musgrave’s GB operation.
Speaking at the IGD’s Wholesale 2015 conference last week, Booker retail sales director Steve Fox explained that Budgens, Londis, Premier and Family Shopper all had “very different” retail propositions and that Booker had growth targets for all four brands.
Fox revealed that the group was projecting sales growth in the Budgens estate from £330m to £450m in the next three years, alongside an increase in Londis sales from £530m to £700m. At the same time, Premier sales are expected to grow from £960m to £1.2bn, with Family Shopper expanding from £30m to £330m.
“The four brands are here to stay, and by bringing them under the same group we think we can do a better job for the consumer, the retailer, the supplier and us,” said Fox. “We think we can make improvements in fresh, own label, prices and promotions.”
Fox added that the company was grateful to suppliers, and even some of Booker’s competitors, who provided information to help clear the acquisition through the Competition and Markets Authority. The acquisition of Musgrave GB gives Booker a total turnover of £5.6bn, including a £2bn delivered trade business.
At the conference, trading director Dominic Morrey outlined that fresh was “the key focus” for the group. Sales of Booker’s Farm Fresh brand had increased five times over to £75m since 2010, while the Snacks on the Go! own label had increased 10 times over.
Everyday low pricing and simple propositions meant retailers get a low price on products such as bread even with the purchase of a single loaf, he said, adding that price needed to be maintained with choice. “You can’t serve your way out of mediocrity,” he said.
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