Select & Save has switched its supply deal from Bestway to Booker, The Grocer can reveal.
The symbol group entered into a five-year agreement with the wholesale giant last month, giving retailers access to deliveries via the Booker Retail Partners model and its cash & carry depots.
It means retailers can now take advantage of Booker’s 1,600 fresh and chilled lines, an extensive frozen category, and its Euroshopper and Jack’s own-label brands, with a minimum 30% margin across the range.
Following a “smooth transition period that retailers have embraced”, sales were already trading up 20% week on week across its estate, which would “only increase as our working partnership continues”, Select & Save added.
On top of an extended chilled range and more promotions, it said it was seeing a “strong uptake” in retailers capitalising on its 5.5% rebate scheme under the new supply deal.
“We believe that much of the margin is absorbed within the supply chain by wholesalers, and we are focused on changing this dynamic,” said Select & Save sales director Barry Coleman.
“Our strategy aims to enhance supplier, retailer and consumer engagement through various innovations designed to provide incremental margin to retailers, shared in partnership with Select & Save,” he added.
“We are focusing heavily on several digital media initiatives to improve the customer experience in our stores, with our retailers benefiting. In addition, we will be organising a variety of in-store competitions to increase foot traffic for our members and their customers.”
The business is also exploring ways to release equity in Select & Save to retailers in a bid to make it “a mutual long-term venture”. It is currently being advised on the structure, which would allow retailers to earn dividends in exchange for maintaining a certain level of trade with Select & Save over six months and beyond.
“The rationale behind this approach is that many symbol groups have ultimately sold their retailers out,” added Coleman. “In our model, if an offer is ever made, retailers would have the option to either retain their stake or sell and take the cash upon exit.
“Select & Save is committed to being the true, independent option for retailers, ensuring that our interests remain fully aligned with theirs.”
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