International Retailers Bunch of bankers
Tesco, as you may have heard, has ambitions to purchase wholesaler Booker, which will, they argue “enhance competition and promote consumer interests” while making them a presumable quid or two on the side. Rival wholesalers, including Bestway, Bidfood, Landmark and SPAR, are having none of it, saying that Tesco’s buying power will boost Booker and have a deleterious effect on the compo, and have asked the relevant authorities to take the necessary steps to block the deal. Tesco is in the throes of a turnaround strategy which is enjoying some success. Waitrose, in the meantime, is extending the trial of its recipe box experiment, where you get everything you need to cook a slap-up meal delivered to your doorstep. In the US, a recent study has shown that online grocery retail is going to grow at close on 20% year-on-year for the next five years, which represents a $20bn opportunity for anyone willing and able to jump in. And all over the world, young millennials are indicating that they have more trust in certain retail or lifestyle brands than they do in banks – so when the former start offering financial services, the kids will jump in, mounting a plausible threat to the banking industry.
Comment: Funny old world, isn’t it?