Village stores are expressing concern over what they perceive as a fight for survival, alleging that Tesco, the supermarket giant, is employing its cash-and-carry arm to edge them out of business by limiting supplies and grocery deliveries.
Independent retailers, many of whom also operate local post offices, have voiced their grievances, claiming that recent changes introduced by Tesco’s wholesale arm, Booker, are exacerbating pressures, especially in villages where small shops are dwindling or nonexistent.
They assert that Booker has:
– Reduced the availability of items by as much as 30% at certain sites.
– Discontinued customer favorites such as Yorkshire Tea, Rowntree’s sweets, and Colman’s mustard at select locations.
– Diminished the frequency and reliability of deliveries.
Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), has called for scrutiny by the UK competition watchdog, urging action from Kevin Hollinrake, the small business minister.
Goodacre described the reported issues facing small retailers as “shocking” and indicative of large companies intimidating smaller shops. He emphasized the significance of these small shops to communities and highlighted their modest profits.
Seven years ago, despite criticism, the competition watchdog approved Tesco’s acquisition of Booker, the UK’s largest grocery wholesaler.
Through Booker, Tesco also oversees the Londis, Budgens, and Premier groups, comprising thousands of independent stores tied to the wholesaler through purchasing agreements.
Jonathan Cobb, proprietor of the village shop and post office in Miserden, Gloucestershire, expressed a sense of deja vu, suggesting that the concerns raised at the time of the Booker takeover by Tesco were now materializing.
Cobb noted that his local Booker had ceased stocking popular brands like Colman’s mustard, Tuc, and Cheddars biscuits, replacing them with alternatives bearing Jack’s label, affiliated with Tesco, which he hesitated to sell.
Approximately 30% of the range he previously procured from Booker is now unavailable, according to Cobb, who feels Tesco is gradually sidelining smaller retailers.
His shop lacks sufficient storage space for larger orders, and he wishes to maintain relationships with local farms by sourcing fresh produce from them, rather than relying solely on one wholesaler.
Similar concerns were echoed by other small retailers interviewed by The Guardian, with some reporting that up to 20% to 30% of the lines they traditionally purchased from Booker had been impacted.
Despite criticisms from small retailers, Booker remains committed to serving community shops across the UK, whether through branch visits or deliveries.
