Tesco sees “out-of-home” market growing faster than “in-home” dining.
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Tesco is to buy wholesaler Booker for £3.7bn, in a bid to get a bigger slice of the £85bn “out-of-home” market. The supermarket sees this market growing faster than “in-home” dining.
This is a new area for Tesco, but one that accounts for around a third of Booker’s sales. It supplies chains such as Wagamama, as well as pubs, caterers and Rick Stein’s restaurants.
Booker’s core business is its cash-and-carry wholesale business that owns the Londis, Budgens and Premier brands, which operate on a franchise basis.
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Booker had revenues of £5bn last year, with approximately £1bn generated from online sales.
This deal allows Tesco to expand faster into the convenience market, which has been the fastest-growing part of the grocery sector for a number of years. It will add 5,400 stores to Tesco’s existing network of 2,900 small shops.
Tesco believes the deal will save £200m annually and boost annual profits by £25m after three years.
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Tesco is to buy wholesaler Booker for £3.7bn, in a bid to get a bigger slice of the £85bn “out-of-home” market. The supermarket sees this market growing faster than “in-home” dining.
This is a new area for Tesco, but one that accounts for around a third of Booker’s sales. It supplies chains such as Wagamama, as well as pubs, caterers and Rick Stein’s restaurants.
Booker’s core business is its cash-and-carry wholesale business that owns the Londis, Budgens and Premier brands, which operate on a franchise basis.
Booker had revenues of £5bn last year, with approximately £1bn generated from online sales.
This deal allows Tesco to expand faster into the convenience market, which has been the fastest-growing part of the grocery sector for a number of years. It will add 5,400 stores to Tesco’s existing network of 2,900 small shops.
Tesco believes the deal will save £200m annually and boost annual profits by £25m after three years.
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