Booker Sees Marginal Sales Increase Ahead Of Potential Tesco Deal
UK wholesale retailer Booker has posted an increase in group sales of 1.1% in its second quarter, ending 8 September, with non-tobacco sales up 5.8%.
Like-for-like non-tobacco sales grew by 6% compared to the same period last year, however, tobacco sales were adversely impacted by changes in tobacco legislation, falling 9.4% on a like-for-like basis.
The group says that both its catering and retail businesses performed well, and it had a solid quarter for customer satisfaction and cash profit.
Booker announced its plans to merge with UK supermarket giant Tesco in January this year, however, the deal is still under review by the Competition and Markets Authority (CMA).
The CMA said that there are ‘concerns’ that, following the merger, Booker may reduce the wholesale services and terms that it offers to symbol stores around the country, in order to push customers towards their local Tesco.
The investigation is expected to be completed before the end of the year.
"Booker Group continues to make good progress with like-for-like non tobacco sales up 6.0%," said Booker's chief executive Charles Wilson.
"Our plans to focus, drive and broaden Booker Group are on track. The competition review of the planned merger with Tesco is progressing. We continue to help our retail, catering and small business customers prosper through improving our choice, prices and service."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.