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25, and rising, for Costco Costco Wholesale UK managing director Steve Pappas has told Cash & Carry Management that the company has “more new branches in the pipeline, although opening dates have still to be confirmed”. He was commenting after last month’s unveiling of the chain’s 25th store in Farnborough – three months after opening in Southampton. “We purchased the land at Farnborough, clear and ready for construction of the
Wholesale conference Leading trade figures will be speaking at an IGD C&C/wholesale conference being held in London on 12 September. They include Guy Farrant, Booker managing director, UK cash & carry; Martin Williams, md of Landmark Wholesale; Steve Barnett, UK trading director, Costco Wholesale UK; Steve Fox, Booker sales director – retail; Stuart Hyslop, Booker sales director – catering; and Martyn Ward, Palmer & Harvey managing director, commercial & sales. The one supplier speaker will be Simon Digby, Heinz UK business development manager, while the IGD itself will be represented by channel research manager David Shukri, chief economist James Walton and senior business analyst Patrick Mitchell-Fox. Among the topics being discussed are: customer engagement mechanics, private label evolution, and the impact of online ordering. Tel: IGD (01923) 857141.
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The car park was full at the Farnborough opening.
140,000 sq ft warehouse,” said Pappas. “We have a staff of 198, headed by Steve Macdonald, who was previously in charge of our Reading branch and who has been with us since 1995.” The car park was full at the opening, customers having been notified by local
newspaper ads, direct mail and email. Pappas also said that Costco’s new online ordering service was “performing well”. Tel: Costco Wholesale UK (01923) 213113. Costco’s Sue Knowles is in the Spotlight ... see p.13
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Alcohol reaction The Government’s proposal not to proceed with a minimum unit price scheme for alcohol has been applauded by drinks giant Diageo GB, whose country director Andrew Cowan said that the supplier always believed that the idea would not work. “It would have failed to deter problem drinkers and would have unfairly punished responsible drinkers. As such, we welcome the Government’s decision not to proceed with this ineffective policy. “We already support – with partners – many successful initiatives, including Purple Flag and Best Bar None. We have also just introduced a ‘Think How You Drink’ pan-European campaign.” In another comment on alcohol, James Bielby, chief executive of the Federation of Wholesale Distributors, said that the ban on below-
• Cash & Carry Management • August 2013
cost selling of alcohol from 2014 would help to prevent ‘irresponsible discounts’ by large retailers and encourage competition in the grocery trade. However, he called for the Government to go further, saying that below-cost alcohol and price promotions by the retail multiples “undermine the competitiveness of the overall grocery market and, therefore, have an adverse effect on consumer choice. ”While we support this move, a definition based solely on duty and VAT is not realistic and will not cover sufficiently the promotions that are of political concern. “We will continue to make the case for a more workable definition which will make a real difference to the way alcohol is sold in supermarkets.” Tel: Diageo 020-8978 6000. Tel: FWD (01323) 724952.
What next for Makro? There is still much to be done if Booker is to turn round Makro, judging by the first batch of consolidated trading figures. They show that in the 12 weeks to 21 June (including Makro’s results from 19 April), the combined group increased sales by 13.6%. For Booker alone, like-forlike figures were just 1% ahead, while those for Makro were down by 6%. For tobacco, Booker suffered a 2.5% decline and Makro 20.8%, while in nontobacco there was a 3.1% rise for Booker but a 3.6% dip for Makro. Nevertheless, group chief executive Charles Wilson commented: “Overall, it has been a good quarter.”
Wilson: ‘Good quarter.’
Referring to the tobacco situation, he said: “Sales, as expected, have been depressed by the growth of illicit tobacco. Makro has a small tobacco business, and the tobacco sales decline has been compounded by the impact of the display ban.” Wilson added: We anticipate that Booker Group is on course to meet expectations for the year ending 28 March 2014.” Tel: Booker Group (01933) 371000.
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