According to the Euromonitor data, if the merger completes, almost
every third pound spent in convenience stores throughout the UK would
flow into the pocket of the newly merged company, potentially
drastically changing the landscape for those kinds of outlets.
In 2016, Tesco already had a market share of close to 17 per cent in
the convenience stores sector, beating second-placed Co-operative Group,
which had a 14.9 per cent hold.
Spar held 9 per cent of the market, with big brands Sainsbury’s and
Marks & Spencer clocking it at around 8.5 per cent and 7.5 per cent
respectively. Thanks to its ownership of brand like Budgens and Londis,
Booker already boasted a market share of 10.7 per cent.
“The position of Booker as a supplier to so many of Tesco’s rivals may
raise some difficult questions about the retailers power to potentially
set wholesale prices and control the flow of goods to a number of
smaller competitors,” he said. In order to avoid complications, the
combined group may be forced to sell some parts of the business, like
the Londis or Budgens chains, he added.
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