Tesco has announced it is due to buy the owner of Budgens and Londis, Booker Group. This will make Tesco the countries biggest food retailer. Here are my thoughts:
“The Tesco of old is back. This is an extremely bold move and demonstrates an intent and sense of purpose that have been missing for the best part of a decade.
“It also represents the official end of the global dream. For Tesco, the jewel in the crown is once again the UK.
“With the acquisition of Booker, which owns Budgens and Londis, Tesco has shown its hand. Its competitors, in particular the discounters, now know they’re in a fight.
“The message is unequivocal: the UK grocery sector, both retail and wholesale, is ours and we are taking it back.
“Dave Lewis is very clearly setting out to create Britain’s biggest food business and reinforce Tesco’s leading position not only as a grocer but as a wholesaler multichannel retailer with an unassailable position in the UK food business.
“Its competitors will be deeply concerned by Tesco’s increased buying power, with its dominance stretching further throughout the British food industry.”This news will give suppliers and manufacturers real cause for concern.