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UK: Booker and Makro to share space

Booker cash and carries are set to spring up within some 15 branches of Makro as soon as the takeover deal gets competition clearance from the Office of Fair Trading (OFT).

Subject to competition clearance, Booker said it would open cash and carries within about half of the 30 Makro branches. Some 35% of space in the new-look depots would be given over to Booker Wholesale, while Makro would retain 45% of the space and 20% would be turned into a delivery area. The new set-up will be trialled at Makro Sheffield.

“Our customers will see better availability and more delivery and internet capacity,” said Booker chief executive Charles Wilson. He said Booker would remain purely a ‘trade only’ wholesaler, whereas Makro would continue to be open to both trade and other small businesses.

The news came as Booker revealed a 3.3% increase in sales for the six months to 14 September, although like-for-like sales to retailers were up by only 2.2%.

Sales through the group’s Premier symbol group rose by 9%, thanks in part to a net gain of about 40 stores, taking the total to 2,735.

Steve Fox, sales director for retail, said: “Our Mega Deal promotion continues to drive extra sales and footfall into stores, with sales reaching £1m each promotion.”

He added that the Euro Shopper own-brand range continued to go “from strength to strength” with sales up by 17%.

But Fox said the market would remain “challenging” as shoppers continued to watch their spending.

Source: talkingretail.com
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