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Author Topic: Bookers Cash'n Carry snapped up by debt ridden Tesco  (Read 21016 times)

JL

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #75 on: 19-06-17, 09:14PM »
...and yet Drastic is pulling out of his own version of Bulk distribution in Thailand. 'If it isn't making money it's going ' could be the new Tesco mission statement
 :question:

Tesco pulls plug on Thailand bulk business as UK sales grow
https://www.ft.com/content/5499cf8c-5266-11e7-bfb8-997009366969

Is Dave actually admitting one of his own plans isn't working :question:  :o

OpShunned

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #76 on: 25-08-17, 07:55AM »
The bosses of Tesco and Booker yesterday defended their proposed merger, as the impact of the £2.7bn deal continues to reverberate around the grocery industry.[/i

In a joint letter to the Competition and Markets Authority (CMA), Tesco chief executive Dave Lewis and Booker CEO Charles Wilson said they had "absolutely no intention" to try and divert sales from one business to the other by deteriorating the offering in either Tesco or Booker.
http://www.cityam.com/270866/tesco-and-booker-bosses-defend-tie-up-while-costcutter


,,,and the Wolf promised not to blow the Three Little Piggie's house down too  :)
mind you the Piggies weren't at home that day as they were all in hospital being treated for Hepatitis E  >:D

OvaSees

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #77 on: 25-08-17, 10:06AM »
There's no way they could credibly make that kind of statement - it's an inevitability as Tesco has already stated that synergies brought about from the merger would unlock cost savings of over £200m over 5 years, so sales leakage would occur even if they haven't planned it - not even their ego's can control market forces!

Crocodile Dundee Centre

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #78 on: 05-10-17, 09:06PM »
Tesco's Booker takeover must be blocked, wholesalers tell watchdog

The bosses of seven of the UK’s largest wholesalers have come out fighting against Tesco’s mooted £3.7bn takeover of Booker and called on the competition watchdog to block the deal outright.

Their fiery opposition to the takeover, which they argue “threatens the survival of the independent retailer”,  comes just a day after Tesco boss Dave Lewis reasserted his confidence in the Booker takeover remaining on track.

The wholesalers, who together account for 60pc of the market, claim that if the takeover proceeds “Tesco will have incontestable power over the procurement of all grocery categories in the UK. Suppliers will find it even harder to resist Tesco’s demands.”

The wholesalers argue that they are already disadvantaged as they cannot match Tesco’s 29pc share of the grocery market, which will increase with the Booker deal.

The biggest threat is that Booker will be able to buy its products at Tesco’s prices as the wholesaler takes advantage of the supermarket’s wider purchasing power.

“With these prices, it will be able to drive its competitors, be they delivered wholesalers, cash and carry or symbol operators, out of business.


http://www.telegraph.co.uk/business/2017/10/05/tescos-booker-takeover-must-blocked-wholesalers-tell-watchdog/

notsofunny

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #79 on: 05-10-17, 09:35PM »

Oh I do cry for them,

and as to the report that Tesco would have to sell Thousands of Tesco Express and one stop,,,, can an,y one truly see Tesco selling the money cow ?,

What I can see is that if they do not allow this to go pass , Then Tesco will Invite small stores to join the One stop chain ,

stockrotateman

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #80 on: 06-10-17, 12:01AM »
If this merger doesn’t go through, what will happen to tosco or even drastic.

Trolleywally

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #81 on: 06-10-17, 12:26AM »
If this merger doesn’t go through, what will happen to tosco or even drastic.
Tesco will continue trading but Dave Lewis (Drastic,Drastic Dave is called on this site) will most probably leave as his plans forTesco hinge on this takeover and it is now in the hands of the take over panel as shareholders will get a vote on the takeover with those staff of Bookers and Tesco having a vote if they are shareholders as I presume there are quite a few both present and past staff (IE: those who are retired,taken redundancy or moved on).

Equalizer87

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #82 on: 06-10-17, 12:37AM »
As stated DL needs this to work, it's the jewel in the Crown of all his plans.

Plan B - keep cutting, keep slashing
"The only thing necessary for the triumph of evil is for good men to do nothing"

Trolleywally

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #83 on: 06-10-17, 12:53AM »
As stated DL needs this to work, it's the jewel in the Crown of all his plans.

Plan B - keep cutting, keep slashing
Don’t think he has a plan B other then cutting and running,leaving and taking his millions with him!

OpShunned

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #84 on: 06-10-17, 07:55AM »
Reported yesterday that Dave has only made around 1 third of his projected 1.5 billion pounds worth of operational cost savings. Bearing in mind his extensive  slash and burning of staff, buildings, projects, overseas adventures and product resets etc what's next?

A Booker merger will savage distribution both at Tesco and Booker?
Lorries on the road 24/7.

AlLL customer service ( centre based) outsourced?

A mass restructure of metros and express stores perhaps involving a franchised brand including those thousands of stores controlled by Booker?

Why?

Divest himself of employee liabilities and the associated costs that go with them.
Just my opinion of course.

Anyone care to speculate as to how he saves one billion?
« Last Edit: 06-10-17, 07:59AM by OpShunned »

OvaSees

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #85 on: 06-10-17, 09:44AM »
If the drastic (sic) changes and cuts we've seen so far have only delivered a third of the savings the future can't be anything other than savage. You can't cut CAs any more, there's barely anything left, he has to start looking at where the big money sits and that's in managers as far as payroll goes. Canteens going, stores closing, depots closing, offices closing, assets disposed of, international businesses sold, night teams going, service centres closing, 24-hour trade going, subsiduaries sold off, pension scheme changed, premium payments eroded, full time work evaporating in favour of flexi contracts - and that's only reduced debt a bit and brought costs down by a third - what else is left other than more of the same but aimed at the bigger costs?
« Last Edit: 06-10-17, 09:54AM by OvaSees »

Equalizer87

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #86 on: 06-10-17, 01:06PM »
As stated DL needs this to work, it's the jewel in the Crown of all his plans.

Plan B - keep cutting, keep slashing
Don’t think he has a plan B other then cutting and running,leaving and taking his millions with him!

That's was my point. He's cut his way to the meagre profits the company has at this time and will have to keep doing so if the Booker deal (which in my opinion will) fails.
"The only thing necessary for the triumph of evil is for good men to do nothing"

OpShunned

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #87 on: 06-10-17, 08:12PM »
Dave's pitch is that the small independents will benefit from a Tesco/Booker merger. They aren't buying it and given Tesker's ability to supply 'their' high street concerns with bulk-bought groceries/ciggies/alcohol etc, I don't buy it either.

The preliminary findings are due out at the end of this month. Anything favourable for the Boosco alliance will be met with a more vociferous objection from the convenience store community.

This alliance will be dire for the smaller franchised groups and potentially devastating for Tesco / Booker distribution staff??

Dave asked for this merger evaluation to be f***ed. I agree that he is using this as a means of securing a large chunk of his one billion cost savings that he has yet to realise.

Bottom line is that small concerns don't have the buying power of Tesco. If Tesco and Booker control the convenience store scene, they win.

This is gonna get ugly in the New Year  :D

Equalizer87

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #88 on: 06-10-17, 09:01PM »
Completely agree,  I don't see how Tesco/Booker buying power would be beneficial to small independent retailers, it would just keep them stuck in their pockets.
"The only thing necessary for the triumph of evil is for good men to do nothing"

Duracell

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #89 on: 07-10-17, 10:38AM »
I believe T will have too much “control” over product availability, which could give them some benefit, alas on the flip side it increases the scale of failure when things go wrong.
We hear of buying power, but another flip side, the cross connection with booker, does that mean that any problem that was limited to supermarkets sources of meat and fresh produce could they then become apparent and extend within the hospitality industry that Bookers supply?
I have another concern, if the merger is accepted, where we see remedial measures being made by T to meet the wage legislation, where do booker staff sit, how does their pay sit with regard to the legislation, do measures need to be made there also.
Will any up coming court case decisions be relative to Booker.

In a nutshell we see what T are faced with in cost and expense meeting wage legislation and the potential effect court decisions may have, by merging with booker would they be taking on more of the same?
« Last Edit: 07-10-17, 10:42AM by Duracell »
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
"Being a rep doesn't make a person right anymore than not being a rep makes a person wrong " 

Duracell.

OvaSees

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #90 on: 07-10-17, 11:01AM »
I don't buy the whole 'buying power' thing from Tesco's perspective - it has not delivered lower prices compared to the market, which economically speaking is what people would expect, since their buying practices are profit centric and not price sensitive. If anything, as Equalizer87 has said, I too am absolutely convinced that this 'buying power' will ultimately deliver higher prices across the convenience sector in small independent retailers as they would effectively be forced onto Tesco's terms. It will be indirect price maintenance by Tesco in order to move margin gains, sales and customers to Tesco and away from small independents, with small retailers profits suffering (expect them to close and be replaced with an Express) and customers facing reduced choice and higher prices overall. It's on this basis, and many other serious and genuine concerns, that the opposition to the deal is becoming more vocal but sadly seems to be suppressed somewhat in the media.

Put simply - if bigger buying power delivered lower prices, then why are these independents and other retailers cheaper to shop at than Tesco, even though Tesco has the biggest buying power of them all?
« Last Edit: 07-10-17, 11:02AM by OvaSees »

londoner83

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #91 on: 07-10-17, 11:42AM »
For a sector to be healthy there needs to be a mix of retailers in the convienance market. By aiming to dominate both sectors all this merger will do is unite people behind the Tesco is too big banner. With Brexit likely to result in further food price inflation wouldn't it be better to see multiple retailers raising prices?

OvaSees

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #92 on: 07-10-17, 12:34PM »
I agree, sector competition is a good thing and numerous enquiries have clearly demonstrated this and that it is healthy in the UK, so any move to erode that is a bad thing for consumers. Price inflation specifically as a result of Brexit should reasonably only be expected to occur if retailers such as Tesco continue with their practices of sourcing products from the EU rather than support farmers and source from their domestic market. 69% of the UK land base is farmland and in quantitative terms we are 90% self-sufficient in some food categories yet I'm still amazed by how comparatively little British product reaches the shelves - if the 'fake farm' brands are to be believed, British goods can also be supplied and sold at a quality that is equivalent to anywhere else and cheaper too. As Tesco's sales have shown when compared to inflation and deflation rates in the last couple of years, they are heavily reliant on inflation and higher prices to drive sales which is why they prefer the EU supply base - another example of how they are clinging on to what are becoming outdated business practices in a changing world.

Equalizer87

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #93 on: 07-10-17, 02:32PM »
@ OvaSees

Totally agree
"The only thing necessary for the triumph of evil is for good men to do nothing"

OpShunned

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #94 on: 12-10-17, 06:03PM »
Booker expects Tesco takeover deal to complete by 2018

The wholesaler reports pre tax profits of £88m as it waits on findings from the CMA


http://www.independent.co.uk/news/business/news/booker-tesco-takeover-deal-complete-2018-wholesaler-competition-and-markets-authority-a7995996.html


Why in the hell is a company like Booker, that's apparently thriving, hooking up with this crowd?

OvaSees

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #95 on: 13-10-17, 08:41AM »
The problem here is that Tesco is still focused on increasing market share by the elimination of competition, at the same time ignoring the changing habits of consumers in this new economic climate. Increasing your property portfolio at a time of high rents, extortionate business rates and consumers increasingly moving to online and convenience shopping only opens the way for disruptive organisations such as Amazon to capture the market. I still say the deals looks like Booker and Tesco trying to chase growth in a market where there is little of it - they both already operate in mature, saturated markets.

OpShunned

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #96 on: 26-10-17, 11:00PM »
The initial findings due very shortly, toward the end of this month  :) :)

Do we sense a favourable outlook for the alliance?

Anyone out there who works gainfully for Booker harbour an opinion on whether your company, that's doing very well currently, should be jumping into bed with Dave?

on a lighter note ..why does Booker's CEO Charles look like an an inbred  >:D

JL

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #97 on: 27-10-17, 12:12AM »
What does an inbred look like?   ;D

I hope the Booker deal is blocked it would show Drastic and pr*tt are clueless once again.  :)

Equalizer87

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #98 on: 27-10-17, 03:40PM »
The problem here is that Tesco is still focused on increasing market share by the elimination of competition, at the same time ignoring the changing habits of consumers in this new economic climate. Increasing your property portfolio at a time of high rents, extortionate business rates and consumers increasingly moving to online and convenience shopping only opens the way for disruptive organisations such as Amazon to capture the market. I still say the deals looks like Booker and Tesco trying to chase growth in a market where there is little of it - they both already operate in mature, saturated markets.

I have to agree, there is almost no growth in the grocery retail sector, the only viable plan is stealing market share off the competition.

Tesco's plan to chase growth looks foolhardy in such a restricted market.
"The only thing necessary for the triumph of evil is for good men to do nothing"

londoner83

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Re: Bookers Cash'n Carry snapped up by debt ridden Tesco
« Reply #99 on: 27-10-17, 06:22PM »
Surely a better business plan would be to maintain current market share and profits. With a impending recession highly likely do we really want to be ever increasing profits? You can see the newspaper headlines now billions made by Tesco whilst families can't afford to eat.....