Friday 22 May 2015

The Londis, Budgens, Premier Combo - a new kid on the block?

Representing approximately £830m in incremental sales, taking them to 9.4% of the UK convenience sector, and building on their supply chain efficiencies, Booker’s acquisition of Londis and Budgens has to represent a quantum leap for the Group.

The strategic link with Musgraves also offers two-way synergies, whilst the increased buying power ‘can’t hurt’ on Booker's side of negotiation table.

The issue for suppliers has to be the speed with which they can review their trading strategies, terms and conditions (prices & terms disparities) and negotiate some compromises in the small window afforded by the inevitable competition issues resolution…

In terms of re-negotiation, suppliers need to re-assess their relative competitive appeal to Booker, given the new combo above.

From a shopper perspective, it might also be worth re-mapping the relative competitive appeal of Londis, Budgens and Premier from the perspective of the consumer-shopper.  To accelerate the process, see our Buying Mix Analysis tool

That then leaves preparation of a settlement point that reflects your perceived pulling power with the 'new Booker', and goes some way towards closing any prices/terms gap, before Booker does it on your behalf...

For a free HIM infographic re shopper insights see here

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