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Booker Snapshot, February 2019

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1 Booker Snapshot, February 2019
Retailer performance Must see stores 2017 2018e % change Turnover (£ ex VAT) 5,536m 6,117m 10.5% No. of depots 210 212 0.9% Sales area (sq m) 857,756 864,756 0.8% Premier, Victoria Dock, South Bridge Road, Hull, HU9 1TL One of Booker’s key ‘stores of the future’, bringing latest mission-thinking to life in the convenience channel Chef Central, Tesco Extra, Bar Hill, Cambridge, CB23 8EL First partner format between Booker and Tesco See report See report Trading priorities Focus, Drive, Broaden Focus by reducing costs to be the most efficient operator and simplifying the business: ‘less is more’ Drive by improving customer satisfaction with choice up, prices down and better service Broaden by offering new products and new services to win new customers Drive: Choice up Extending ranges, especially in fresh to offer market leading proposition in cash & carry Building private label portfolio to provide unique products and differentiation Drive: Prices down Focus on maintaining price leadership in cash & carry Extensive investment in roll-backs on 100s of products Stronger promotional offers Building value ranges across all key lines Long term price lock-downs providing stability to customers Drive: Better service Online ordering and delivery service provide customer convenience Depot shop, online order and delivery offers flexible, multi-platform service proposition Focus on improving the whole customer experience through ‘PRIDE’ initiative: Parking, Reception, Internal, Delivery, Exit Broaden Extending business capability: building new areas of expertise to target new customer groups, both in foodservice and retail distribution Expansion in India, adding own depots and by joint venture Source: IGD Datacentre Your checklist to trade with Booker Do you understand the Booker business and its role as a route to market in both retailing and catering channels? Can you support pricing guarantees to underpin Booker’s price lock-down and roll-back strategies? Are you supporting Booker’s drive to build business solutions and support for its business customers? Are you accessing Salesout data to provide category insight in the wholesale sector? Do you offer unique products for the wholesale channel enabling independent traders to offer clear points of differentiation in the market-place? Do you understand Booker’s role as a low cost route to market for innovation and NPD? © IGD 2019 Follow us on

2 Booker Snapshot, February 2019
New marketing initiatives See the full Booker profile on Retail Analysis Read Selected key executives Latest developments When? What? So what? January 2019 Q3 and Christmas trading shows continued robust growth In Q3 (to 24 November) Booker sales were up 11.0% and in the six-weeks to 5th January up 6.7% (8.2% excluding tobacco). The slowing trend reflects the annualisation of key contract wins in late 2017. October 2018 Tesco H1 results show further strong Booker growth Booker sales in H1 2018/19 were up 14.7% to £2,960m, boosted by contract wins amongst forecourt retailers. The 30 best selling Booker lines are now in 70 Tesco stores and the bulk sales insert trialled at the Galleons Reach, Beckton will be rolled out to eight more sites. June 2018 Second Chef Central opened in Tesco store Sited in the Tesco Extra store at Beckton East London, this unit is fully integrated into the retail space. A range of 30 best-selling Booker bulk lines has also now been launched across 50 larger Tesco stores. Strong growth at Booker Tesco has reported Q1 trading lifted by very positive initial results from newly integrated Booker. Booker's growth of 14.3% (12.4% excluding tobacco) was driven by underlying performance as well as new business wins. March 2018 Tesco completes merger with Booker The merger became effective as of 8am on 5 March 2018. Charles Wilson Chief Executive Mastermind of Booker’s turnaround and architect of its growth strategy. Now focused on realizing synergy benefits for Booker within the wider Tesco business. Guy Farrant Chief Operating Officer Took up this new role in April 2016 adding responsibility for operations to that of managing director of cash & carry, held since 2010. Stuart Hyslop Managing Director – Booker Group Catering & Small Business Has a key role in driving development of catering offer across all divisions and the evolution of the Makro ‘professional’ offer. Steve Fox Managing Director - Retail Joined in 2002 – focused on driving development of retail customer business, including the Premier retail fascia group as well as the Booker Retail Partners fascias Londis and Budgens. © IGD 2019 Source: IGD Research


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