Tesco merger a 'nobrainer'24 Feb 2018 14:30
Barrie Seymour, a Londis retailer in Yorkshire, sees consolidation as a logical market development, in which independent retailers benefit from the multiples� buying power, while the multiples get to bypass investing in bricks and mortar. �It�s a no-brainer for Tesco - they�re just supplying boxes, there�s no overheads or costs associated with buying more stores,� he explains. �But by supplying independents it�s giving more power to us rather than spreading shoppers� spend around more thinly. All the supermarket store openings haven�t done the industry any good. Aldi and Lidl are opening up here all the time, and online�s not helping either.�
Nimal Navaratnarajah, owner of five Costcutter stores in Devon and Cornwall, agrees that consolidation is mutually beneficial to retailer and supplier. �Supermarkets have changed from trying to expand their store presence to moving into supply now. Instead of opening new stores they�re letting others do the donkey work, which is a good thing. It gives us more power to trade while they work behind the scenes,�