12 Jan 2021
Posted in Retail
Booths’ quality proposition leads to another rewarding Christmas period
Following today’s release of Booths figures for Christmas Trading FY2020/21, Thomas Brereton, Senior Retail Analyst at GlobalData, a leading data and analytics company, comments:
“Family-owned Northern supermarket chain Booths has released a set of stellar Christmas results, which revenue growth in line (or outperforming) those of the major grocers so far. As well as benefitting from the expected transference of spend from shut foodservice and hospitality operators, Booths points to strong alcohol sales (e.g. beer & cider sales up 35%) as well as over 40% growth across its budding B2B and wholesale division (primarily through a successful partnership with Amazon and new partner Gridserve, an electric forecourt operator).
“Booths’ customer base of more affluent shoppers has largely protected it from falling consumer confidence, with these consumers able to use additional discretionary spend to make more premium purchases (and subsequently increasing total spend on food & drink). In addition to Booths’ prominent and established quality offer, its promoted network of local suppliers will have attracted shoppers looking to shift spend to local businesses. Booths’ size gives it greater flexibility than the larger operators, and Booths should look to drive home its distinction in local communities throughout 2021 and onwards.
“Booths now has a much clearer strategy than it had during its less rewarding period three to four years ago; the company had previously tried to compete with the major grocers too tenaciously, attempting to imitate pricing structures of the major players. Recent developments in click & collect (as well as growth in brand awareness through Amazon) will continue to serve it well in the future, and Booths looks set to return to trading profit in the near future as these concepts bear fruit.”