Booker achieves 8.1% rise in sales in first quarter

Booker achieved an 8.1% increase in sales to £2,276 million in its first quarter (13 weeks ended 27 May 2023). On a like-for-like basis, retail sales were up by 6.3% while catering sales rose by 10.8%

Excluding tobacco, retail sales grew by 15.6%, “supported by strong availability and continued focus on choice, price and service, with a great range of promotions and access to fast-growing categories,” said a trading statement issued by Booker’s owner Tesco.

Catering sales are significantly outpacing the market, added the statement, with the On-trade Club launched in May already serving 800 pubs and restaurants, building on the success of the Fast Food Club launched in 2021 – this now has around 28,000 customers as members.

The trading statement also pointed out that catering customers benefited from a further price freeze on more than 500 products, introduced in March.

Ken Murphy, chief executive of Tesco, commented on the “very strong growth” in Booker across both retail and catering. “It’s been successful in both parts of its market; catering particularly strong. The watchword here is not necessarily price per se, but value for money.

“What Booker has been incredibly successful at doing is helping caterers manage the value-for-money equation, which is supplying great product and menu combinations that allow restaurants, pubs and bistros to maintain their margin but offer a great value proposition to customers, and they’re the customers that are particularly doing well in the market. And they’re customers that seem to be in a sweet spot with Booker and they’re driving mutual performance.”