After posting mixed annual results last week, Tesco hailed Booker’s “strongest year ever” as the catering sector bounced back from the effects of the pandemic.
The wholesaler recorded a 12.0% increase in like-for-like sales to £8.68bn in the year to 25 February, outperforming Tesco’s UK retail operations, which grew 3.3%.
Sales in Booker’s catering unit jumped 26.7% to £3.63bn as out-of-home food consumption returned. The business attracted more customers by freezing prices on around 450 key catering lines and getting them to sign up to its ‘Food Clubs’ that offer access to exclusive deals and discounts.
The wholesaler’s retail business also continued to grow well, with sales up 9.9% to £2.89bn, excluding tobacco. The group noted that its Jack’s product range was proving popular with retailers, with over 500 value-orientated lines now available.
However, Booker saw retail tobacco sales decline by 5.6% to £1.91bn as consumers returned to overseas travel and duty-free imports increased.
During the year, Booker saw the number of retail partners it supplies increase by 451.
Tesco’s Chief Executive Ken Murphy commented: “Booker delivered its strongest year ever, helped by an outstanding catering performance as even more customers benefited from its unbeatable choice, price and service.”
NAM Implications:
- Key to compare your Booker business with these stats…
- Re your fair share of sales and investment.
- Given Booker’s performance has to be regarded as centre-stage in Tesco HQ.
