Booker is to cut its “bloated” retail range across cash and carries, grow fresh and expand its existing catering range, according to our sister website Better Retailing.
The strategy was revealed last month by the wholesaler’s commercial director, Sheila Gallagher, at the Destination 2025 wholesale conference. She said Booker had undertaken a major review across its depots to provide stores with more focused product ranges, alongside more fresh lines.
She said: “It takes into account the nuances of whether you’re a forecourt, a small corner shop or a small neighbourhood grocer. We’ll respect regional lines and local lines that are needed as part of the range. It’s allowed us to tighten up a range that was a little bit bloated.”
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Attendees at the Destination 2025 event were informed that the review was informed by extensive market research. “We looked at the longer term, we put the market data that’s available to us with the customer insight that we’ve got, the performance of the categories, what role will each of these categories play in the medium and long terms,” Gallagher explained. “Where can we see opportunities for more accelerated growth?”
Alan Mannings, of Shop on the Green in Chartham, Kent, praised the decision. He told Better Retailing: “I’m really looking forward to it. I’ve already seen elements of this happen in my nearest Booker depot. They’ve reduced the current range by 20% through the removal of slow sellers. It’ll be even better if they can add more fresh lines. For example, I no longer see Euro Shopper cola, mango juices or some curry sauces there.”
Mark Dudden, of Albany Road Post Office in Cardiff, described the strategy as “positive”. He cited localised confectionery as a category he’d like to see added.
Ken Singh, of BB Nevison Superstore in Pontefract, West Yorkshire, has also seen the availability of more-popular coffee products improve at his nearest Booker depot. However, he said there was still a major difference between the number of catering promotions in comparison with retail. Singh’s thoughts reflect concerns from other retailers, who had previously claimed the wholesaler was expanding catering at the expense of retail in depots. “I already see quite a lot of catering specials there,” he added.
Booker has been raising awareness of the review more widely. Retailers reported being notified about the changes in the past month through official notices, seen by Better Retailing, posted at depots.
One rival wholesaler, which asked not to be named, has been using the range review as an opportunity to gain more customers. It told Better Retailing: “We’ve been told by retailers that their nearest depot has closed its doors to retail and is serving catering only. It’s the same with another nearby. We’re using it as an opportunity to try to gain customers who would have previously shopped at those branches.”
Gallagher provided assurances that locally popular lines would be protected. However, one retailer has expressed concern. “It seems like Booker is following a similar strategy as Tesco, which has recently reduced ranges in its stores,” they said.
“It may affect certain seasonal products such as chocolates. They sell well for me all year round, but aren’t quite so good elsewhere. Some towns and cities have one Booker depot serving the entire area. However, Booker needs to consider individual customer bases. The bestsellers at a newsagent in a council estate will differ to that of a convenience store based in a city centre nearby.”
Read the 9 February edition of our sister title RN Magazine for an in depth analysis of Booker’s range refresh strategy, and its impact on convenience stores.
