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Cash & Carry Outlets

1998 Market Report

Fourteenth Edition 1998


Edited by Phillippa Smith

ISBN 1-85765-881-7
Cash & Carry Outlets

Cash & Carry Outlets

Executive Summary ........................................................................... 1

1. Market Definition ............................................................................ 2

2. Market Size ..................................................................................... 7

3. Industry Background.................................................................... 11

4. Competitor Analysis..................................................................... 15

5. Strengths, Weaknesses, Opportunities and Threats (SWOT) .... 27

6. Buying Behaviour......................................................................... 29

7. Outside Suppliers to the Industry ............................................... 34

8. Current Issues .............................................................................. 36

9. Forecasts ...................................................................................... 40

10. Company Profiles ....................................................................... 43

11. Further Sources.......................................................................... 50

Key Note Research........................................................................... 57

The Key Note Range of Reports ...................................................... 58

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Cash & Carry Outlets Contents

Contents

Executive Summary 1

1. Market Definition 2

INTRODUCTION .......................................................................................................................2
MARKET POSITION .................................................................................................................2
Table 1: The UK Grocery Wholesaling Market by Type of Operators (£m and %),
1996 and 1997 ......................................................................................................................3
MARKET SECTORS.................................................................................................................3
Table 2: The UK Cash and Carry Market by Type of Operator
(% of total sales), 1997.........................................................................................................4
MARKET TRENDS....................................................................................................................4
Grocery Wholesale Trends ..................................................................................................4
Table 3: Index of Consumer Expenditure and Grocery Wholesaling Turnover
(index 1992=100), 1992-1997..............................................................................................5
Catering Sales ......................................................................................................................5
Delivered Trade ...................................................................................................................5
Table 4: The UK Grocery Wholesaling Market and Penetration by Delivered Trade
(£m and %), 1990-1997........................................................................................................6

2. Market Size 7

THE TOTAL MARKET ..............................................................................................................7


Table 5: The UK Cash and Carry Market at Current Prices
(£m and index 1992=100), 1992-1997................................................................................7
NUMBER OF DEPOTS .............................................................................................................8
Table 6: Number and Average Sales of Cash and Carry Depots
(£m and number), 1990-1997..............................................................................................8
AVERAGE DEPOT SIZE ..........................................................................................................9
Table 7: Average Depot Size of Cash and Carry Operators
(square feet), 1996 ...............................................................................................................9

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Cash & Carry Outlets Contents

PRODUCT MIX..........................................................................................................................9
Table 8: Grocery Cash and Carry Product Mix (%), 1996 ..............................................10

3. Industry Background 11

RECENT HISTORY .................................................................................................................11


INDUSTRY CONCENTRATION .............................................................................................12
Table 9: Non-Specialist Wholesalers of Food, Beverages and Tobacco
by Turnover (number and %), 1997..................................................................................12
TRADE ASSOCIATIONS........................................................................................................13
Federation of Wholesale Distributors ..............................................................................13
Institute of Grocery Distribution......................................................................................14

4. Competitor Analysis 15

THE MARKETPLACE.............................................................................................................15
Table 10: Number of Depots of the Leading Cash and Carry Groups, 1997 ................15
Own Labels.........................................................................................................................16
Table 11: Selected Own-Label and Exclusive Label Brands of
Leading Cash and Carry Distribution, 1997...................................................................17
Own-Label Development...................................................................................................18
Today’s Group ....................................................................................................................18
Booker .................................................................................................................................18
MARKET LEADERS ...............................................................................................................19
Table 12: Turnover of Selected Leading Cash and Carry Companies
(£m), 1997/1998..................................................................................................................19
Cash and Carry Operators................................................................................................19
Booker PLC ........................................................................................................................19
Financial Results ...............................................................................................................20
Makro Self Service Wholesalers Ltd ................................................................................20
Financial Results ...............................................................................................................21
Watson & Philip PLC ........................................................................................................21
Financial Results ...............................................................................................................21
Batleys PLC........................................................................................................................21
Financial Results ...............................................................................................................22
Bestway Cash & Carry Ltd...............................................................................................22
Financial Results ...............................................................................................................22
AF Blakemore and Sons Ltd.............................................................................................22
Financial Results ...............................................................................................................23

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Cash & Carry Outlets Contents

AG Parfett & Sons Ltd ......................................................................................................23


Financial Results ...............................................................................................................23
W Wing Yip PLC ................................................................................................................23
Buying Groups ...................................................................................................................24
NISA-Today’s (Holdings) Ltd ...........................................................................................24
Financial Results ...............................................................................................................24
Landmark Cash & Carry Ltd ...........................................................................................24
ADVERTISING AND PROMOTION........................................................................................25
Recent Promotions .............................................................................................................25
Trademarket ......................................................................................................................25
Today’s Group ....................................................................................................................25
World Cup 1998 .................................................................................................................26

5. Strengths, Weaknesses, Opportunities and Threats 27

STRENGTHS...........................................................................................................................27
WEAKNESSES .......................................................................................................................27
OPPORTUNITIES....................................................................................................................27
THREATS ................................................................................................................................28

6. Buying Behaviour 29

GENERAL TRENDS ...............................................................................................................29


Table 13: Cash and Carry Customer Profile (%), 1990-1997.........................................29
GROCERY SALES..................................................................................................................30
Table 14: UK Grocery Trade by Store Format by Value (%), 1990-1997.....................30
Table 15: Consumer Expenditure on Food, Alcohol and Tobacco
at Current Prices (£m), 1992-1997...................................................................................31
INSTITUTE OF GROCERY DISTRIBUTION WHOLESALING SURVEY.............................31
THE CATERING SECTOR......................................................................................................32
Table 16: Consumer Expenditure on Catering at Current Prices
(£m and index 1992=100), 1992-1997..............................................................................32

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Cash & Carry Outlets Contents

7. Outside Suppliers to the Industry 34

FOOD, DRINK AND TOBACCO ............................................................................................34


DISTRIBUTION/LOGISTICS...................................................................................................34
INFORMATION TECHNOLOGY SYSTEMS ..........................................................................35

8. Current Issues 36

NEW OPENINGS.....................................................................................................................36
Costco ..................................................................................................................................36
Hyperama ...........................................................................................................................36
Big Red Shed ......................................................................................................................36
Wrights of Horwich............................................................................................................36
PACKAGING WASTE LEGISLATION ...................................................................................37
INFORMATION TECHNOLOGY.............................................................................................37
CORPORATE ACTIVITY ........................................................................................................38
Bellevue/BWG ....................................................................................................................38
Dhamecha Foods................................................................................................................38
AG Parfett and Sons..........................................................................................................38
Makro ..................................................................................................................................38
Booker .................................................................................................................................38
DUTY FRAUD..........................................................................................................................39

9. Forecasts 40

FORECASTS 1998 TO 2002 ..................................................................................................40


Table 17: Forecast UK Cash and Carry Market at Current Prices
(£m), 1998-2002 .................................................................................................................40
PRODUCT DEVELOPMENTS................................................................................................41
INFORMATION TECHNOLOGY.............................................................................................41
OVERSEAS EXPANSION ......................................................................................................41
CONCLUSIONS ......................................................................................................................41

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Cash & Carry Outlets Contents

10. Company Profiles 43

INTRODUCTION .....................................................................................................................43
DEFINITIONS ..........................................................................................................................43
FURTHER INFORMATION.....................................................................................................43
Batleys PLC........................................................................................................................44
Bestway Cash & Carry Ltd...............................................................................................45
Booker PLC ........................................................................................................................46
NISA-Today’s (Holdings) Ltd ...........................................................................................47
Makro Self Service Wholesalers Ltd ................................................................................48
Watson & Philip PLC ........................................................................................................49

11. Further Sources 50

Associations ........................................................................................................................50
Periodicals ..........................................................................................................................51
Directories ..........................................................................................................................52
General Sources .................................................................................................................52
HBI UK Information Sources .............................................................................................53
Government Publications..................................................................................................55
Other Sources .....................................................................................................................55

Key Note Research 57

The Key Note Range of Reports 58

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Cash & Carry Outlets Executive Summary

Executive Summary

Cash and carry represents the largest sector in the UK grocery


wholesaling market, with sales valued at £9.51bn in 1997. The sector can
be segmented by type of operation into: multiple depot operators, buying
groups and independents. Multiple depot operators account for the largest
share, with 54%, led by the major players, e.g. Booker, Makro and Batleys.
Buying groups, comprising consortiums of wholesalers and retailers, have
accounted for an increasing share of the market in recent years, taking
around 44% in 1997. Independents are mainly unaffiliated, solo depot
operators, many of which are active in the delivered trade.

The past few years have seen a dramatic concentration of the cash and
carry trade, with increase in corporate activity, especially among the
multiple depot companies. Booker’s acquisition of Nurdin and Peacock in
November 1996, created the largest cash and carry group in the UK.
Recently, Makro, the Dutch-owned wholesaling group, was also taken over
by the German group, Metro, for £1.7bn.

Overcapacity in the cash and carry trade, together with intense price
competition, has led to many operators moving into new markets, e.g.
catering or food service, or adopting a policy of range expansion by
widening their product range, e.g. into pet foods. Many have also
expanded their delivery service to servicing the independent retailers. On
the operational side, increased investment in centralised distribution
systems and information technology (IT), has enabled companies to
operate more effectively, efficiently and economically.

The future looks less optimistic for the cash and carry trade, with the
continued growth of the delivered sector, while increasing dominance of
the major grocery multiples, together with the impending economic
slowdown, suggest that the cash and carry operators will continue to
operate in a difficult and extremely competitive marketplace. Key Note
forecasts that the cash and carry sector will grow on average by 2.6%
year-on-year from 1998 to £10.7bn in the year 2002.

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Cash & Carry Outlets 1. Market Definition

1. Market Definition

INTRODUCTION

Cash and carry is defined as wholesale depot operations from which retail
customers purchase goods and provide their own transport. Credit terms
are normally available, while a limited delivery service may be offered to
larger customers. Cash and carry operators buy goods in large quantities
from the manufacturer or buying group and then sell these goods to their
retail customers at prices only slightly above what they paid for them.
They accept low net profit margins, in return for high-volume sales, and
thus are able to keep costs to a minimum.

MARKET POSITION

The cash and carry trade forms an integral part of the UK wholesaling
industry, linking suppliers and smaller retailers in the grocery market.
The grocery wholesaling market was valued at £1.1bn in 1997; of this,
cash and carry represented the largest share, taking 63%, with sales
estimated at £9.51bn. The delivered trade took another 35.6%, with the
remaining 1.4% accounted for by mixed businesses. According to the
Institute of Grocery Distribution (IGD), the delivered trade is wholesalers
offering a full-range delivery service directly to the trade customer’s
premises, for which an additional fee is normally charged.

Mixed businesses are those wholesalers who provide both a cash and carry
and delivery service from the same depot, with approximately a 50/50
split of the business.

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Cash & Carry Outlets 1. Market Definition

Table 1: The UK Grocery Wholesaling Market by Type of Operators


(£m and %), 1996 and 1997

e
1996 1997
£m % £m %

Cash and carry 9,392 64.7 9,508 63.0


Delivered trade 4,920 33.9 5,372 35.6
Mixed business 200 1.4 212 1.4

Total 14,512 100.0 15,092 100.0

e — Key Note estimates

Source:Institute of Grocery Distribution/Key Note

MARKET SECTORS

The cash and carry trade can be categorised into three main types of
operators:

• multiple depot operators


• buying groups
• independents.

By far the largest sector comes from the multiple depot companies, of
which the top three are Booker (including Nurdin and Peacock), Makro
and Batleys. This sector accounted for a 54% value share in 1997. The
major multiples have their own distribution networks, which channel
suppliers’ deliveries from the UK and worldwide sources into regional
distribution centres, from which deliveries are made by in-house transport
to their customers, including the larger supermarkets and superstores.

Buying groups represent the fastest growing sector, their share increasing
to 44% by value in 1997. The smaller, unaffiliated independents tend to be
solo depot operators and they accounted for a declining 2% market share
in 1997.

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Cash & Carry Outlets 1. Market Definition

Table 2: The UK Cash and Carry Market by Type of Operator


(% of total sales), 1997

Type of Operator
Multiple depot operators 54
Buying groups 44
Independents 2

Total 100

Source:Key Note

MARKET TRENDS

Grocery Wholesale Trends

The UK grocery wholesaling market continued to grow in 1997, expanding


by 34% since 1992. This has outstripped total spending by consumers over
the same period. Grocery wholesalers have begun to make progress in
recent years, through increased focus on the customer, combined with
information technology (IT) and merchandising driven improvements.
They have also adapted to changing market conditions in a number of
ways. These include increasing emphasis on catering sales, expansion of
their customer base and their product portfolio, the creation of new and
larger buying groups, and the development of symbol trading formats.

1997/1998 has seen increasing concentration of the cash and carry sector,
with the continued growth of the major multiple depot operators, e.g.
Booker, Batleys and Makro. The merger of Booker with Nurdin and
Peacock, created the largest cash and carry group in the UK.

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Cash & Carry Outlets 1. Market Definition

Table 3: Index of Consumer Expenditure and Grocery Wholesaling


Turnover (index 1992=100), 1992-1997

Index of Grocery Index of Consumer


Wholesaling Turnover Expenditure

1992 100 100


1993 110 106
1994 117 111
1995 122 116
1996 127 123
1997e 134 132

e — Key Note estimates

Source:Key Note based on Institute of Grocery Distribution/Office for National


Statistics

Rationalisation has also taken place in the delivered trade sector. The
importance of national and regional food service contracts has meant that
many delivered wholesalers have needed to expand, whether by
acquisition or other forms of investment, e.g. Watson & Philip has
national capabilities following its purchase of smaller wholesalers, and
CJ Lang has widened its catchment area through the recent purchase of
Young and McMillan.

Catering Sales

With the shrinking of their core customer base, i.e. independent grocers,
and the tightening of margins caused by intense price competition, many
wholesalers have increasingly moved towards the catering or food service
sector. Sales to caterers have risen from 17% of the total market in 1991,
to around 38% in 1997, while the grocer’s share has fallen from 68% to
60% over the same period. NISA-Today’s has recently revamped its
Kitchen King catering range with new design, giving the own labels a
fresh and appealing identity.

Delivered Trade

Another important trend has been the continued shift towards the
delivered trade, which reflects the growth of larger independent retailers,
e.g. Symbol groups which generally source most of their stocks from the
groups approved wholesalers. The need for temperature-controlled

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Cash & Carry Outlets 1. Market Definition

transport for the fast-growing chilled and frozen foods market, has also
favoured the delivered trade, whose share of the grocery wholesaling
market has risen from 26.4% in 1990, to an estimated 35.6% in 1997.

Table 4: The UK Grocery Wholesaling Market and Penetration


by Delivered Trade (£m and %), 1990-1997

£m % Share

1990 2,823 26.4


1992 2,923 24.9
1994 4,449 32.5
1995 4,794 33.3
1996 4,920 33.9
1997e 5,372 35.6

e — Key Note estimates

Source:Institute of Grocery Distribution/Key Note

The benefits of delivered wholesale to the bigger retailers are that they
are able to exercise tighter control over their business and also to take
advantage of labour-saving developments such as IT-ordering links. Many
delivered wholesalers have also developed schemes which make using
their service more efficient, while others also offer financial benefits, e.g.
Palmer & Harvey McLane offer retailers a service whereby they can order
goods from other suppliers and have them charged to their Palmer &
Harvey account.

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Cash & Carry Outlets 2. Market Size

2. Market Size

THE TOTAL MARKET

Cash and carry represents the largest sector in the UK grocery


wholesaling market, with a 63% value share and sales totalling £9.51bn in
1997.

Between 1992 and 1997, the cash and carry trade grew by 9.9%, compared
with 27% for the wholesaling sector as a whole.

Table 5: The UK Cash and Carry Market at Current Prices


(£m and index 1992=100), 1992-1997

£m Index (1992=100)

1992 8,648 100


1993 8,799 102
1994 9,047 105
1995 9,395 109
1996 9,592 109
1997e 9,508 110

e — Key Note estimates

Source:Institute of Grocery Distribution/Key Note

The cash and carry trade has seen major structural changes in recent
years. The marketplace remains extremely competitive, while changes in
the consumer base have forced many cash and carry operators to adopt a
strategy of range expansion by moving into new markets, e.g. catering or
food service, or expanding their product portfolio to attract new customers,
e.g. pet foods.

Wholesalers are not only competing against each other, but also face
increasing pressure from both the discounters and the mainstream

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Cash & Carry Outlets 2. Market Size

supermarket chains. To survive the challenge of the major grocery


multiples, many of the smaller independent cash and carry operators have
joined voluntary buying groups, e.g. NISA-Today’s and Landmark. The
underlying trend has been towards greater concentration in the
marketplace, as reflected in the significant growth of the top three
operators in recent years, mainly through acquisitions or organic depot
development.

NUMBER OF DEPOTS

The number of depots in the cash and carry sector has progressively
declined since 1993, when it reached 544. The past few years have seen an
accelerated decline, mainly due to the increasing move towards
rationalisation and cost reductions in the trade. However, this is
compensated for by the increase in average sales per depot, which rose to
£18.06 in 1996. Key Note estimates that this figure will have reached
£19.21 in 1997.

Generally, depot size is partly dependent on the type of products that are
stocked by the wholesaler, and also on the company’s stock management
policy, i.e. some operators may require large warehouse space which would
inevitably increase costs within the supply chain.

Table 6: Number and Average Sales of Cash and Carry Depots


(£m and number), 1990-1997

Total Number Average Sales


of Depots per Depot (£m)

1990 534 14.71


1992 539 16.04
1993 544 16.17
1994 535 16.91
1995 524 17.93
1996 531 18.06
1997e 495 19.21

e — Key Note estimates

Source:Institute of Grocery Distribution/Key Note

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Cash & Carry Outlets 2. Market Size

AVERAGE DEPOT SIZE

Many of the larger cash and carry operators have been increasing their
depot size in recent years, reflecting the need for greater efficiency. It is
estimated that the average size of depots has doubled since 1990, from
around 40,000 square feet to an estimated 80,000 square feet in 1997.

Makro has the largest depots, with an average size of 128,600 square feet,
reflecting the diversified range of products stocked. Batleys also has
depots of an average size of 93,200 square feet.

Table 7: Average Depot Size of Cash and Carry Operators


(square feet), 1996

Makro 128,600

Batleys 93,200
Bestway 86,000

Booker Cash and Carry 82,080

Nurdin and Peacock 82,079
Parfetts 81,250
Musgrave 81,000
Blakemore 61,700
Trademarket 39,500
Knox 19,600

† — 1995 figures

Source:Institute of Grocery Distribution

PRODUCT MIX

The range of products stocked by cash and carry operators is generally


determined by depot size, location and client base. Recent trends have
involved a move towards greater centralised distribution and deployment
of merchandising technology, which has resulted in more effective
displays. The range of products has also undergone significant
rationalisation over the past decade, as cash and carry operators become
more customer focused and operate more efficiently through the
increasing use of information technology (IT) computer systems A typical
cash and carry core range has been reduced from 30,000 previously, to
around 12,000 to 20,000 today.

 Key Note Ltd 1998 9


Cash & Carry Outlets 2. Market Size

According to the latest Institute of Grocery Distribution (IGD) survey,


cigarettes, tobacco and alcohol continue to represent the core products,
accounting for 58.3% of total sales in 1996. General grocery products are
also important, taking another 13.4% value share.

The growth of convenience foods has led cash and carry operators to stock
an increasing range of convenience lines, e.g. ready meals, snacks and
dairy products.

Table 8: Grocery Cash and Carry Product Mix (%), 1996

Cigarettes and tobacco 39.1


Alcohol 19.2
General grocery 13.4
Soft drinks 7.4
Confectionery 6.6
Chilled food 4.4
Meat 2.6
Frozen food 1.8
Produce 0.4
Other 5.1

Total 100.0

Source:Institute of Grocery Distribution

 Key Note Ltd 1998 10


Cash & Carry Outlets 3. Industry Background

3. Industry Background

RECENT HISTORY

The cash and carry trade is a relatively new sector, which started in the
1960s. It comprises mainly independent operators. One of the first cash
and carry companies was Batleys, which started in 1958, and was followed
in the early 1960s by Nurdin and Peacock.

The emergence of the supermarket multiples in the 1960s forced many of


the traditional wholesalers in the grocery distribution sector to turn to a
cash and carry format. This was to reduce operating costs and to allow
prices to be kept low. It was also to allow their retail customers to compete
effectively against the grocery multiples chains.

The growth of the cash and carry sector in the 1960s and 1970s was
paralleled by the growth of the voluntary buying chains and the
independent retailer’s association.

To compete effectively and to survive the challenge of the major food


multiples, many cash and carry operators have joined voluntary buying
groups, such as NISA-Today’s and Landmark. These groups are able to
secure large purchases and benefit from higher discounts for bulk
purchases. They also have group marketing initiatives and advertising
campaigns.

The cash and carry sector has undergone massive development in recent
years, adapting to new market conditions in a number of ways. These
include an increasing emphasis on the catering or food service sector,
expansion of the product base, e.g. pet foods becoming more efficient and
marketing oriented, with information technology (IT) and
merchandising-driven improvements. Better management systems have
resulted in smaller, but more profitable depots, while the adoption of
integrated IT systems has played a crucial role in optimising stock
turnover and improving buying efficiency.

Many cash and carry operators have also improved their own-label lines
and developed store fascia for their retail customers in order to promote
brand and store loyalty.

As with the food industry, the wholesaling cash and carry trade is also
effected by European Union (EU) legalisation, the most recent being the

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Cash & Carry Outlets 3. Industry Background

Packaging Waste Regulations, introduced in March 1997. The proposals


place an obligation on wholesalers and retailers to recover at least 50% of
used packaging by the year 2001. The Federation of Wholesale
Distribution (FWD) disapproves of the new regulations, saying that they
are unfair, as the wholesaler picks up a seller obligation on secondary
packaging, which would result in additional costs, estimated to be 6% of
overall profits.

INDUSTRY CONCENTRATION

The UK cash and carry trade remains relatively fragmented in terms of


depot numbers and companies. While the top three operators, e.g. Booker,
Makro and Batleys, have grown significantly over the past decade (1988 to
1998) and currently account for over 40% of depots and 55.7% of sales, the
majority of cash and carry operators are still operated by independents,
although many have secured the benefits of belonging to a buying group.

The fragmentation of the sector is reflected in the Census of Production


PA1003, which analyses non-specialist wholesalers of food, tobacco and
beverages by turnover size. The data reveals that 68.1% of enterprises
have a turnover of less than £500,000 and 8.6% have a turnover of more
than £5m.

Table 9: Non-Specialist Wholesalers of Food, Beverages and


Tobacco by Turnover (number and %), 1997

Number of Enterprises % of Total


Turnover Size (£000)
1-49 725 16.2
50-99 695 15.5
100-249 1,030 23.0
250-499 600 13.4
500-999 420 9.4
1,000-4,999 630 14.0
5,000+ 385 8.6


Total 4,485 100.0

† — does not sum due to rounding

Source:Business Monitor PA1003 — Size Analysis of UK Businesses

 Key Note Ltd 1998 12


Cash & Carry Outlets 3. Industry Background

Barriers to entry are high, due to the high capital costs of securing
suitable large premises, while trading volumes would also necessitate a
significant outlay in terms of stock and equipment.

The past few years have seen increasing concentration of the cash and
carry sector. Overcapacity has put intense pressure on the smaller
suppliers, and has also led to major restructuring and rationalisation by
the leading operators, e.g. Booker’s acquisition of Nurdin and Peacock in
November 1996 created the largest cash and carry group in the UK, with a
40.6% value share in 1997. Also, at the end of 1997, the Dutch group,
SHV, owners of the Makro cash and carry chain, sold its 60% stake in the
company to German group, Metro, for £1.7bn.

TRADE ASSOCIATIONS

Federation of Wholesale Distributors

The Federation of Wholesale Distributors (FWD) is the main trade body


for cash and carry, and delivered wholesalers in the UK. Its membership
covers around 90% of all cash and carry wholesalers, as well as around
90% of delivered wholesalers.

The FWD represents and promotes co-operation between the wholesaling


sector and its customers and suppliers. One of its main functions is to
emphasise the wholesaling mechanism as the most efficient, lowest-cost
distribution channel between manufacturers and retailers, or catering end
users. The FWD represents member’s interests to government and the
European Union (EU), and provides advice for members on legislative and
legal matters. It is also active in shaping policies and initiatives, e.g. the
Take Home Blueprint, which provides merchandising guidelines for
independent retailers and has the full support of the major beer and cider
suppliers.

The FWD also holds at least three annual conferences and produces a
yearbook, as well as two trade magazines for its members, Pro Wholesaler
and Catering Wholesaler.

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Cash & Carry Outlets 3. Industry Background

Institute of Grocery Distribution

The Institute of Grocery Distribution (IGD) is an independent-registered


charity, formed in 1972 from a combination of the Grocery Institute and
the Institute of Food Distribution. Its key function is to provide a central
research and education service for the grocery industry, working on behalf
of corporate and personal members. The IGD also publishes a wide
number of specialist business reports, including an annual survey on the
UK grocery wholesaling industry.

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Cash & Carry Outlets 4. Competitor Analysis

4. Competitor Analysis

THE MARKETPLACE

Traditionally, the cash and carry trade has been highly fragmented, with
many small operators often serving local markets. However, with the
changing structure of the marketplace, there has been a move towards
greater concentration, with the continued growth of the multiple depot
operators.

Booker remains the dominant operator, with around 181 depots. Other
leading players include: Landmark Cash & Carry, with 83 depots; Makro
Self Service Wholesalers, with 27 depots; Batleys, with 14 depots; and
Bestway, with 16 depots.

Table 10: Number of Depots of the Leading Cash and Carry


Groups, 1997

Booker PLC 181


Landmark Cash & Carry Ltd 83
Makro Self Service Wholesalers Ltd 27
Bestway Cash & Carry Ltd 16
Batleys PLC 14
Trademarket (Watson & Philips PLC) 8
AF Blackmore and Sons Ltd 6
AF Parfett & Sons Ltd 5
Others 205

Total 545

Source:Company information

Most of the independents and smaller chains are part of buying groups,
the two leading ones being NISA-Today’s and Landmark Cash & Carry,
while those unaffiliated operators tend to be specialists in particular

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Cash & Carry Outlets 4. Competitor Analysis

product areas, e.g. Hancocks, which specialises in confectionery. Many are


also active in the delivered trade sector.

Competition has intensified in recent years, with changing market


conditions forcing wholesalers to maximise their efficiency and adopt a
policy of range expansion, with the aim of providing a ‘one-stop’ shopping
experience for their customers.

Own Labels

Own labels have become increasingly important in the cash and carry
trade, helping to build up consumer loyalty. Also, as they are generally
cheaper than the major brands, they give retailers a better profit margin.

Own-label products were originally introduced to offer a price differential


to the major manufacture brands, but with improvements in quality
levels, they have become a viable and practical proportion to
budget-conscious consumers.

Generally, wholesalers have developed their own-label products under


names quite separate from the trading company’s name. This allows
greater flexibility and also allows the wholesaler to supply own labels to a
variety of retail fascia and formats, e.g. Batley’s Best Buy and Bestway’s
Best-In; while in some cases, e.g. Booker, the own-label name has formed
the basis of fascia branding for its retail customers such as Premier,
Zip-In, Drinkstore and Newstop.

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Cash & Carry Outlets 4. Competitor Analysis

Table 11: Selected Own-Label and Exclusive Label Brands of Leading


Cash and Carry Distribution, 1997

Company Product Own Label


Booker Grocery Happy Shopper, Family Choice
Catering Chef’s Larder
Tobacco and cigarettes Gold Mark, Red Band
Confectionery Tuck Shop
Drinks Malt House Vintners

Landmark Catering Caterers Kitchen


Grocery Pricepoints, Lifestyle
Drinks Scandia, Shire, Chieftain, Viborg
Heritage, Edrigde Vale, Spectra,
Prince Consort, Le Caves du Pre,
Vallett, Murry Ridge, Pedsera,
Edridge Manor, Castle Royal
Tobacco No 3, Special Style

Makro Grocery Aro


Catering Village Cross, Aro Catering
Drinks Charles House, Baltic EB,
Don Pablo
Tobacco Charles House

Trademarket General grocery Today’s, Gold,


(Watson & General grocery Breakfast Club, Bodyface
Phillip) Catering Orchard Farm, Kitchen King
Confectionery Fun Factory
Drinks Cellars International
Tobacco Pennylane

Batleys Grocery Best Buy


Catering Batley’s Catering
Tobacco Dukes

Bestway General grocery Best-In, K2, Map, White Pearl


Drinks Best Vin, The Bonnie Prince
Five Freres, The Imperal Tzar,
Imperial Stag, Kings Lager,
Table continued overleaf...

 Key Note Ltd 1998 17


Cash & Carry Outlets 4. Competitor Analysis

...table continued from previous page

Company Product Own Label


Bestway Drinks Landi, Lelac, Veuve du Longchamp
Imp Gin, Best Blend, Quartz Lager,
Drie River, Ridgemount Bay,
Jacques Berger, Castille Perez,
Eden Glade, Rossinni Los Vientos
Tobacco Park Royal

NISA-Today’s General grocery Today’s Price, Right Price, Premier


Gold, Fun Factory, Breakfast Club
Catering Kitchen King
Drinks Cellars International
Tobacco Knightbridge, Pen Pushers
Toiletries Body Fine
Electrical goods Prism
Confectionery Kandy Store
Chilled foods Heritage
Stationery/ Premier Collection,
paper products Occasions

AG Parfett
& Sons As in Landmark

Source:Company information

Own-Label Development

Today’s Group

Today’s Wholesale Association recently redesigned its main own-label


range. Refinements were made in response to a questionnaire sent to
1,000 retail customers and the views of a consumer panel. The new design
aims to provide a product with shelf impact, clarity of product title and
price marking, and perceived product expectation.

Booker

Following the takeover of Nurdin and Peacock, Booker has retained the
Happy Shopper label in favour of Family Choice. Family Choice Value is
being used as the value line own-label offer.

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Cash & Carry Outlets 4. Competitor Analysis

MARKET LEADERS

Table 12 analyses the turnover of the leading cash and carry groups in the
UK.

Table 12: Turnover of Selected Leading Cash and Carry


Companies (£m), 1997/1998

£m Year End

Booker PLC 5,265.0 27/12/97


Makro Self Service Wholesalers Ltd 905.7 31/12/97
Watson & Philip PLC 637.5 02/11/97
Batleys PLC 525.2 02/05/98
NISA-Today’s (Holdings) Ltd 495.5 05/04/97
Bestway Cash & Carry Ltd 454.2 30/06/97
AF Blakemore and Son Ltd 410.6 30/04/97
AG Parfett & Sons Ltd 159.5 30/06/97

Source:ICC Juniper database

The following section presents a brief analysis of the leading cash and
carry companies, including buying groups in the UK.

Cash and Carry Operators

Booker PLC

Booker PLC is one of UK’s leading food distribution groups. The


company’s wholesale business operates as Booker Belmont Wholesale
which comprises Booker Cash and Carry (including Nurdin and Peacock),
and Booker Wholesale Foods. Recent consolidation of the Booker Belmont
Wholesale customer base has resulted in a total of 439,000 customers
comprising 110,000 in retail and 329,000 in catering.

Following the acquisition of Nurdin and Peacock in November 1996,


Booker became the largest cash and carry group in the UK.

Booker is the Mace symbol group wholesaler for England and Wales,
serving just under 400 Mace stores. The company has developed a variety
of fascias and formats for its cash and carry customers, e.g. Premier for

 Key Note Ltd 1998 19


Cash & Carry Outlets 4. Competitor Analysis

convenience stores, Zip-In for forecourts, Drinkstore for off-licences and


Newstop for confectioners, tobacconists and newsagents (CTNs).

Booker recently completed the strategic review of its cash and carry
business under the Project Heartland programme, which aims to optimise
stock availability and minimise stock holdings through the creation of five
regional distribution centres. The integration process has resulted in the
closure of 32 branches, with 181 remaining. All the former Nurdin and
Peacock branches that have been retained feature new livery layouts and
advanced management systems.

Following a strategic review in March 1998, Booker announced that it will


concentrate only on its core food wholesaling business, which represents
90% of its turnover. The company is committed to a £250m sale of its
non-core business in June 1998, and has recently survived two
unsuccessful bids for its cash and carry business from two leading
supermarket groups, Somerfield and Budgens.

• Financial Results

For the year ending 31st December 1997, turnover for Booker PLC rose by
18.5% to £5.27bn, while pre-tax profits also increased dramatically to
£71.4m, compared with £13m the previous year. The company’s latest
interim results to 10th September 1998, show group pre-tax profit and
exceptionals halved to £11m. Sales in Booker Cash and Carry were also
down by 4.9%, mainly due to the 14% reduction in selling space, as a
result of closing 33 cash and carries, but sales per square feet rose by 7%.
Operating profit in Booker’s Wholesale division was down 33% to £17.5m
and turnover also fell by 3.6% to £1.7bn. The company promised
improvements in the second half, as a result of the completion of the
Project Heartland centralised distribution system, and the integration of
the Nurdin and Peacock branches.

Makro Self Service Wholesalers Ltd

Makro Self Service Wholesalers Ltd is part of the Dutch company, SHV
Makro NV, which owns 60% of the business. In the UK, Makro operates 27
cash and carry depots, serving a wide variety of customers, of which 30%
are grocery retailers and 40% caterers. At the beginning of August 1997,
the company formed a trading alliance with Spar Landmark. Makro
stocks a total of some 35,000 lines, including grocery and non-foods.
Own-label lines account for more than 15% of the company’s product
range; the leading brands include Aro (general grocery) and Charles
House (drinks/tobacco).

At the end of 1997, Metro, the German group, which already owned 40% of
Makro, purchased the remaining 60% for £1.7bn. Makro’s 27 stores in the
UK will be added to Metro’s portfolio, which totalled 197 stores in 16
European countries.

 Key Note Ltd 1998 20


Cash & Carry Outlets 4. Competitor Analysis

• Financial Results

For the year ending 31st December 1997, turnover decreased to £905.7m,
while there was a pre-tax loss of £2.8m.

Watson & Philip PLC

The Watson & Philip group comprises three main trading subsidiary
companies: Alldays Stores Ltd; W and P Foodservice Ltd; and
Trademarket Ltd; the largest of which is Alldays, the UK’s leading chain
of specialist convenience stores. W and P Foodservice is a leading
wholesale supplier to the catering industry and operates ten depots in the
UK, while Trademarket is engaged in grocery wholesaling, and operates
nine cash and carry outlets, mainly based in Scotland.

In March 1996, Trademarket left the Landmark buying group of which it


was a member, and joined the Today’s Wholesale Association.It now
stocks the Today’s own-label range. In June 1997, Trademarket launched
Trademarket Plus, a promotional initiative for its major retail customers.
It offers promotional deals to a membership selected from Trademarket’s
best customers. Around 150 of the group’s 9,000 retail customers took part
in the scheme.

The company also launched a delivery service under the Trademarket


Select banner providing independent retailers with a range of chilled,
frozen and ambient products, including licensed drinks and tobacco. The
Watson & Philip’s Orchard Farm brand was also introduced into
Trademarket, thus improving the company’s offer to its catering
customers.

• Financial Results

1997 proved to be another year of record profits, boosted by the strong


trading performance of its core business.

For the year ending 2nd November 1997, pre-tax profits increased by
14.5% to £21.5m, on a turnover which rose by 10.6% to £637.5m. For
Trademarket, the year produced another solid performance, with turnover
of £132.2m, although operating profits were down by 8%, reflecting
competitive pressures. For the future, Trademarket will seek to increase
sales through innovative services to counteract the decline in the
traditional cash and carry customer base.

Batleys PLC

Batleys PLC is one of the UK’s leading independent family-owned cash


and carry groups. The company operates 14 cash and carry depots and
eight pet food depots. In May 1997, Batleys announced plans to expand
south from its northern base, and it aims to have three southern-based

 Key Note Ltd 1998 21


Cash & Carry Outlets 4. Competitor Analysis

depots by 1998. The 15th depot opened on April 1997 at Nottingham,


while another is scheduled at Cardiff in October 1998. The company has
plans for another ten depots in the south of England, including sites at
Southampton and Bristol under consideration. Most of the new stores will
incorporate separate pet food areas. Batleys’ leading own brands include
Best Buy and Batley’s Catering.

• Financial Results

For the year ending 2nd May 1998, turnover dropped from £538.7m to
£525.2m, although figures are for a 53-week period for 1997. Pre-tax profit
was up by 29% to £12.3m, although the results highlight the continued
problem of widespread bootleggling of tobacco and alcohol. Nevertheless,
there was a clear improvement in the financial performance of the group,
with its established warehouses providing another solid performance.

Bestway Cash & Carry Ltd

Established in 1976, Bestway Cash & Carry Ltd is the largest member of
the Landmark Cash & Carry group, with 16 branches. It has around
39,000 registered customers and employs 1,400 people. Although
primarily based in the South East, the company has pursued an
expansionary policy in recent years. Bestway targets trade customers
only, comprising 75% retailers, i.e. licensed grocers, convenience stores
and CTN operators, off-licences and 25% private caterers. Its leading own
label is Best-In, which includes some 500 grocery and non-grocery lines,
together with a range of exclusive wines, sprits and beers.

In April 1997, the company launched a 3-week own-label promotion with


the slogan ‘You can’t get better than free’, offering free products when
selected grocery lines are purchased.

• Financial Results

For the year ending 30th June 1997, the company’s turnover increased by
1.2% to £454.2m, while pre-tax profit was also up by 9.9% to £10.9m.

AF Blakemore and Sons Ltd

This West Midlands-based cash and carry group operates seven wholesale
depots, of which six are cash and carry. The company is a member of the
Spar Landmark buying group, and is the registered supplier for 550 Spar
stores in the Midlands and East Anglia, of which 154 are co-owned Spar
stores. The company’s main customers are independent grocery retailers
which account for 56% of sales, and which also account for 93% of
delivered trade. Caterers, public houses and CTN retailers are becoming
increasingly important. Around 25% of cash and carry sales are own label,
totalling some 2,555 lines. The leading brands include Spar, Lifestyle,
Pricepoints and Caterers Kitchen.

 Key Note Ltd 1998 22


Cash & Carry Outlets 4. Competitor Analysis

In April 1997, the company renamed its catering delivered operation,


Blakemore Food Service, while the product range was also expanded to
include both branded and the Landmark exclusive label drinks.

• Financial Results

For the year ending 30th April 1997, the company’s turnover fell slightly
to £410.6, while there was a 18% rise in pre-tax profits to £3.9m.

AG Parfett & Sons Ltd

AG Parfett & Sons Ltd a North West-based cash and carry group was
established in 1980, and currently operates five cash and carry depots
with total selling area of 365,000 square feet. The majority of its
customers are independent grocers, which account for just over 88% of
sales, with off-licences and forecourts taking the remaining 12%.

As a leading member of Landmark, Parfett offers a wide range of own


brand and exclusive label products, which include Lifestyle and Caterers
Kitchen.

In August 1997, the company launched a new loyalty scheme, offering


individual retail customers credits based on orders from own labels placed
above their previous ones. Customers have the opportunity to earn rebates
in excess of £1,500.

Parfett recently acquired fellow Landmark member, John Watson, for an


undisclosed sum. The 46,000 square feet cash and carry, based at Halifax,
Yorkshire, began trading on 1st July 1998.

• Financial Results

For the year ending 30th June 1997, the company’s turnover increased by
3.3% to £159.5m, while pre-tax profits fell by 1.6% to £2.4m.

W Wing Yip PLC

W Wing Yip PLC is one of UK’s leading specialist food importers from the
Far East, and represents one of the UK’s largest Chinese cash and carry
warehouse chains. From its humble beginnings in Digbeth, Birmingham,
the company has expanded to other major cities which have a strong
Chinese population. Today, the company operates four warehouses across
the UK, selling more than 2,500 oriental product lines and utensils, and
supplying up to 2,000 Chinese restaurants. Goods are sold from both cash
and carry, and delivered trade.

Recently, the company launched a £5m pagoda-style office complex for the
local Chinese community.

 Key Note Ltd 1998 23


Cash & Carry Outlets 4. Competitor Analysis

Buying Groups

NISA-Today’s (Holdings) Ltd

NISA-Today’s (Holdings) Ltd is the UK’s largest buying consortium, with


some 306 retail members and 402 wholesale members. NISA-Today’s was
formed in 1977, with the aim of improving the buying power of large
independent retailers. This was expanded into the wholesaling sector with
the launch of Today Wholesale Association in October 1978. The
company’s main function is to negotiate trading terms and invoice cost
prices of branded and own-label products on behalf of its independent
members.

NISA-Today’s has a broad spread of own-label products, offering a major


wholesaling range, under Today’s, which comprises some 350 lines and a
1,000 product retail selection under the NISA label. In catering, there are
also 350 items under the Kitchen King label and 162 licensed drinks
under the Cellars International label.

The group also has a number of umbrella brands, which include Breakfast
Club (cereals), Bodyfine (health and beauty), Fun Factory (children’s
confectionery and drinks) and Premier (US cola, crisps and snacks).
Recent launches include the Heritage label for chilled foods and own-label
stationery under the Knightbridge and Pen Pushers names.

At the beginning of 1998, Today’s was relaunched as The Today’s Group,


with a new logo and trading policy. A major feature of the relaunch was
the development of an inter-channel IT system, linking retailers,
wholesalers and central office.

• Financial Results

In the year to 5th April 1997, turnover rose by 20.8% to £495.5m, while
pre-tax profit also increased, by 47.7% to £1.2m.

Landmark Cash & Carry Ltd

Landmark Cash & Carry Ltd is a wholesale-owned cash and carry group
with around 30 wholesale members operating 65 depots. Total
membership is over 100,000 independent customers. Following recent
restructuring, the group currently concentrates its activities on three
major areas: delivered wholesale catering; cash and carry; and
convenience stores. Landmark operates a strong own-label policy, the
range comprises over 400 retail products under the Lifestyle label and a
price fighting range under the Pricepoint brand, which incorporates
cigarettes. For the food service sector, there is also a range of products
under Caterers Kitchen.

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Cash & Carry Outlets 4. Competitor Analysis

During 1997, the company celebrated its 25th year of trading with a
launch of a £1.25m anniversary promotional programme comprising a
wide range of business, social and charitable events.

In August 1997, Landmark formed a trading alliance with Makro cash


and carry to cover overrider negotiations.

Landmark has recently undergone the first corporate makeover in more


than 25 years. The new look, incorporating the slogan ‘Professionalism,
Integrity, Technology’ is being incorporated into the fascia of all its depots,
as well as the company’s advertising and stationery.

ADVERTISING AND PROMOTION

The main bulk of advertising expenditure by the cash and carry trade is
mainly concentrated on price and product-led promotions, and retailers’
promotions. The aim of both is to enable their customers, i.e. the
independent retailers, to compete on price with the major multiples and
discount retailers, and also to encourage customer loyalty by offering
discounted prices on products. Point-of-sale (POS) and other
merchandising materials, including posters, may also be provided for
specific lines, including own brands by buying groups, and cash and carry
labels.

The only cash and carry company listed in ACNielsen MEAL is market
leader, Booker, which spent some £479,100 on main media advertising for
the year to June 1998; while a further £437,000 was spent by the Symbol
group, Spar, on promoting its own labels.

Recent Promotions

Trademarket

In June 1997, Trademarket launched its latest promotional initiative


named Trademarket Plus, which offers its most progressive retail
customers unique deals in return for certain disciplines. It featured a
2-week promotion every 6 weeks, with a minimum of six extra special
deals among other key offers. Each member receives POS material and up
to 1,000 free leaflets. The success of the scheme during the first three
promotional periods, has resulted in it being given permanent status.

Today’s Group

In May 1998, Today’s Group promotion offered individual retailers a


selection of multibuy deals, which enabled them to make margins of 50%
and above. The promotions focused on Today’s own-label products, with

 Key Note Ltd 1998 25


Cash & Carry Outlets 4. Competitor Analysis

the featured lines changing every 2 weeks, e.g. buy two cases, get one case
free.

In March 1998, the company launched its exclusive retailer in-depot


promotion under the theme ‘Best of British’. Customers purchasing one of
Britain’s top-selling brands will receive a scratchcard, and whoever
reveals three Union Jacks will win a luxury weekend in London for two
people.

World Cup 1998

To coincide with the World Cup 1998, a number of themed promotions


were run by many of the leading cash and carry groups.

Booker Cash and Carry devised a guide to the World Cup for its
customers. The eight-page booklet gave hints on display and production
selection, while a range of wines and champagne were introduced with
France 1998 labels.

Landmark used a scratchcard promotion to offer customers instant prizes


until 13th June 1998, which included free products, multibuy deals, cash
and tickets to World Cup games. Wholesalers in the group had been
issued with a World Cup mailout containing free scratchcard multibuy
coupons, information on the tournament and advice on how to maximise
sales during the event.

NISA-Today’s gave away World Cup Final tickets in its ‘Strike it Lucky’
promotion, which began on 1st June 1998. Based on a spot-the-ball theme,
the scheme featured 30 brands and retailers were allowed one attempt at
finding the ball for each promotional item purchased.

 Key Note Ltd 1998 26


Cash & Carry Outlets 5. Strengths, Weaknesses, Opportunities and Threats (SWOT)

5. Strengths, Weaknesses,
Opportunities and Threats (SWOT)

STRENGTHS
• Cash and carry represents the largest sector in the UK grocery
wholesaling market, with sales reaching £9.51bn in 1997.

• The recent merger between Booker and Nurdin and Peacock will provide
serious challenge to the major grocery multiples.

• Many cash and carry companies offer their customers specially-tailored


packages, usually own-label products, shop fascia, store planning and
design, thus encouraging high standards of in-store discipline.

• Recent improvements in the quality of own labels and improvements in


product ranges have helped developed customer loyalty and boosted
sales.

WEAKNESSES
• The cash and carry trade has become increasingly concentrated, with a
shrinking customer base, thus limiting opportunities for organic growth.

• Cross-channel trading and duty evasion have seriously eroded alcohol


and tobacco sales, especially for independent cash and carry operators.

• There is limited new product development (NPD) because of the high


failure rate of new product launches.

• Regional saturation of wholesale depots has seriously affected the


smaller independent operators, many of which are unable to compete
with the major wholesalers.

OPPORTUNITIES
• There are tremendous marketing opportunities for UK cash and carry
companies to expand in continental Europe, especially the fast emerging
Eastern European countries where British expertise in wholesale
distribution would face little competition.

 Key Note Ltd 1998 27


Cash & Carry Outlets 5. Strengths, Weaknesses, Opportunities and Threats (SWOT)

• Greater use of electronic point-of-sale (EPOS) technology in the cash and


carry trade would result in better targeting of customers, while in the
delivered trade, greater use of information technology (IT) systems
should improve stock and customer service levels.

• The delivered sector provides tremendous opportunities for future


market expansion for cash and carry operators, especially in catering
sales.

• Own-labels lines could be further exploited, especially added-value


premium products.

• Further consolidation of the wholesale industry through acquisitions


and mergers would result in increased buying power of the cash and
carry operators, thus enabling them to compete more effectively against
the grocery multiples.

• There are also tremendous opportunities to expand into more profitable


lines, e.g. fresh and chilled products, thus boosting revenue.

THREATS
• Cross-channel trade and illegal ‘bootlegging’ of alcohol and cigarettes
continues to pose a serious threat to the cash and carry trade.

• The recent Packaging Waste Legislation places an obligation on


wholesalers to recover at least 50% of used packaging by the year 2001.
This is likely to mean that increased costs would have to be passed on,
thus threatening the viability of the smaller retailers.

• The increasing dominance of the major supermarket chains would


continue to threaten the existence of the independent grocer, and, in
turn, would seriously affect the cash and carry market.

• The smaller cash and carry independents and unaffiliated groups are
vulnerable to takeover from the major multiple depot operators.

 Key Note Ltd 1998 28


Cash & Carry Outlets 6. Buying Behaviour

6. Buying Behaviour

GENERAL TRENDS

The main customer of the cash and carry trade is the independent grocer.
A recent trade survey carried out by the trade magazine, Independent
Retail News, reveals that around 92% of independent grocers, off-licences,
confectioners, tobacconists and newsagents (CTNs), and convenience
retailers use a cash and carry, and more than half of them visit one at
least three times a week.

Figures from the Institute of Grocery Distribution (IGD) research shows


that grocery retailers accounted for 61% of total cash and carry sales in
1996.

The other major customer group, caterers, accounted for a 36% share in
1996. Other customers include owners of CTNs, convenience stores and
petrol forecourts.

Since the beginning of the 1990s, there has been a progressive shift
towards caterers, who have been taking an increasing share of the market,
while grocery retailers have seen an erosion in their business.

Table 13: Cash and Carry Customer Profile (%), 1990-1997

Grocery Retailers Caterers Other

1990 62 17 15
1992 66 29 5
1994 62 34 4
1996 61 36 3
1997e 60 38 2

e — Key Note estimates

Source:Institute of Grocery Distribution/Key Note

 Key Note Ltd 1998 29


Cash & Carry Outlets 6. Buying Behaviour

GROCERY SALES

Although the total grocery market has increased in value by 40% since the
beginning of the 1990s, the share taken by the independent grocer has
shrunk from 10.3% in 1990 to 7% in 1997. This is mainly as a result of the
increasing dominance of the major grocery multiples, whose share has
grown from 79% to 83% over the same period.

Table 14: UK Grocery Trade by Store Format by Value (%),


1990-1997

e
1990 1992 1994 1995 1997

Multiples 79.0 81.0 80.0 82.0 83.0


Independents 10.3 9.0 8.0 7.0 7.0
Co-op 10.7 10.0 12.0 11.0 10.0

Total 100.0 100.0 100.0 100.0 100.0

e — Key Note estimates

Source:Business Monitor SDA25/Key Note

With the shortage of their core customer base, many smaller cash and
carry operators were forced to close, while the larger ones underwent a
period of restructuring and rationalisation in order to adapt to the new
market conditions. To compete with the major multiples, many of the
smaller independent retailers have banded into symbol groups or
voluntary buying groups. The largest is NISA-Today’s, which operates a
nationwide chain of cash and carry outlets, with competitive prices and an
extensive own-label range. Another major retailing group is Spar, the
leading convenience store symbol group in the UK, with around 2,665
stores. The product range of the symbol groups and independent retailers
are concentrated in three core grocery areas; food, alcohol and tobacco,
where sales of all these products have expanded rapidly in recent years.

 Key Note Ltd 1998 30


Cash & Carry Outlets 6. Buying Behaviour

Table 15: Consumer Expenditure on Food, Alcohol and Tobacco


at Current Prices (£m), 1992-1997

Food Alcohol and Tobacco

1992 45,243 33,553


1993 46,234 34,775
1994 47,099 36,624
1995 48,983 37,493
1996 52,257 39,850
1997e 53,201 42,083

e — Key Note estimates

Source:Office for National Statistics/Key Note

INSTITUTE OF GROCERY DISTRIBUTION


WHOLESALING SURVEY

The requirements of both retailers and caterers are very different


according to a recent management survey by the Institute of Grocery
Distribution (IGD) on the wholesaling sector. Both ranked availability of
products as the most important requirement, while product range was
ranked second for caterers and third for retailers. Price marking and ease
of finding products was considered by both types of customer to be of
medium importance, while neither point-of-sale (POS) or financial
packages were seen to be important. Depot technology and information
technology (IT) applications also scored low for both types of customer.

Strong promotions were also seen as vital for retailers, who ranked them
second; but less important to caterers, who ranked promotions fifth. For
retailers, the range of services offered was ranked as the fifth most
important requirement; while this is found to be less important for
caterers and ranked ninth in their assessment.

On the availability of fresh produce, caterers considered this to be much


more important, as they ranked it third; while retailers ranked it
eleventh. Again, caterers considered the speed of transaction to be more
important, ranking it forth on their list, compared with seventh for
retailers.

 Key Note Ltd 1998 31


Cash & Carry Outlets 6. Buying Behaviour

THE CATERING SECTOR

The food service or catering sector has been one of the most dynamic
sectors of the leisure industry. The past decade (1988 to 1998) has seen a
noticeable shift in the percentage of consumer food spending towards food
service channels. This has come about as a result of social and
demographic changes, which have greatly influenced consumer lifestyles
and eating patterns. Increased pressure on time has led to many
consumers eating or purchasing more convenience foods outside the home.
This has been further encouraged by the continued popularity of fast foods
and the growth of foodcourts in non-traditional food service channels, such
as travel locations, e.g. airports, motorway service stations, shopping
malls and leisure venues. The emergence of a strong lunch market has
also boosted catering sales.

Table 16: Consumer Expenditure on Catering at Current Prices


(£m and index 1992=100), 1992-1997

Expenditure Index of Expenditure


on Catering (1992=100)

1992 32,308 100


1993 34,844 108
1994 36,456 113
1995 37,921 117
1996 40,730 126
1997e 44,709 138

e — Key Note estimates

Source:Office for National Statistics/Key Note

Whilst the larger catering companies tend to buy direct from the major
food suppliers, the independent caterer, restaurant and hotels favour a
delivery service from the cash and carry operators. The importance of this
lucrative sector has led to the greater development of own-label lines by
the leading cash and carry operators, with emphasis on quality,
e.g. NISA-Today’s Kitchen King range recently underwent a
comprehensive relaunch and design to give the own-label products a fresh
and appealing identity.

 Key Note Ltd 1998 32


Cash & Carry Outlets 6. Buying Behaviour

The increasing importance of catering sales can be seen in that most of the
multiple depot operators are biased towards that sector, e.g. 75% of
Booker Belmont Wholesale’s customers are caterers, while for Landmark,
the proportion is 60% and Makro 40%. It is likely that the proportion of
catering sales will increase in the future, as more cash and carry operators
move into this fast-growing sector.

 Key Note Ltd 1998 33


Cash & Carry Outlets 7. Outside Suppliers to the Industry

7. Outside Suppliers to the Industry

Outside suppliers to the cash and carry trade mainly comprise the food,
drink and tobacco companies, which supply the bulk of stock going
through the depots. Other important suppliers include the
distribution/logistics companies, and those providing information
technology (IT) systems and computer software.

FOOD, DRINK AND TOBACCO

Suppliers of food, drink and tobacco to the cash and carry trade represents
some of the UK’s largest food manufacturers. The Cash and Carry Big
Book lists the major 50 suppliers, which includes Anchor Foods, Birds Eye,
United Biscuits, Dairy Crest Group, Coca-Cola Schweppes, Imperial
Tobacco, Mars Confectionery and Nestlé UK. In alcoholic drinks, there are
around 20 top suppliers, the leading names include Allied Domecq,
HP Bulmer, Carlsberg Tetley, Guinness Brewing GB, IDV UK, Matthew
Clark, Moet and Chandon, Seagram UK Ltd, United Distillers UK and
The Whitbread Beer Company. In addition to manufacturer brands, many
of the leading food companies supply own-label products.

DISTRIBUTION/LOGISTICS

Effective distribution and improved service levels are vital for cash and
carry operators. The leading suppliers are the distribution/logistics
companies, many of which are part of the international transport groups.
The leading companies include TDG Harris, Exel Logistics and Salvesen
Logistics.

TDG Harris is part of Transport Development Group (TDG PLC), a


leading logistics group operating throughout the UK and other western
European countries. The company operates around 4,500 vehicles at 250
depots and offers a vast choice of ambient and temperature-controlled
warehousing.

Salvesen Logistics, part of the Scottish company, Christian Salvesen, is a


leading national delivery network company, handling over 300,000
products per annum, with depots at Evesham, Ormskirk and Motherwell
in Scotland.

 Key Note Ltd 1998 34


Cash & Carry Outlets 7. Outside Suppliers to the Industry

INFORMATION TECHNOLOGY SYSTEMS

IT systems have become an integral part of modern wholesaling, enabling


the cash and carry operator to operate more effectively, efficiently and
economically. The past few years have seen the leading software suppliers
developing new systems for the cash and carry sector, which provide key
management information. The leading companies include Riva, Siemens
Nixdorf Information Systems and BCP.

Riva is a leading supplier of electronic point-of-sale (EPOS) and wholesale


management systems to the leading companies in wholesaling,
distribution, and cash and carry, e.g. AG Parfetts, Batleys and Bestway.
The company was the first provider to offer Microsoft Windows NT-based
solutions utilising multimedia displays at point-of-sale (POS), allowing the
end user to maximise promotional opportunities in-store, while graphical
and highly intuitive tilling screens facilitate easier till operation, staff
training and increase efficiency. Riva recently entered into a strategic
relationship with Siemens Nixdorf, with the aim of providing technological
solutions to suit wholesalers of all sizes. Under the agreement, Riva will
run its Microsoft-based tilling software on Siemens Nixdorf Beetle EPOS
terminals, and PCs to provide both front and back capabilities.

Siemens Nixdorf Information Systems supplies IT systems to over 50% of


the UK’s cash and carry trade, and recently won a multipound contract for
Booker Belmont Wholesale to supply the company’s 200 site UK estate
with enhanced order processing, central distribution and inventory
management system. It will also provide a comprehensive consultancy
service to enable Booker to connect the UK solution to a multilingual,
multicurrency, cash and carry system.

A leading supplier of IT solutions to the food service industry is Business


Computer Projects Ltd (BCP). Its Accord Distribution System is widely
used by catering wholesalers throughout the UK, including CJ Lang’s
Consort Catering in Scotland, Woodward Food Service, Pioneer Food
Distributors and W McClure in North West, Thomas Kidley in East Anglia
and Holmes Catering in Northern Ireland. BCP is currently developing
Accord to best meet the chefs needs, and recent enhancements include
flexible pricing and telesales features.

 Key Note Ltd 1998 35


Cash & Carry Outlets 8. Current Issues

8. Current Issues

NEW OPENINGS

Costco

In September 1997, the leading warehouse club, Costco, opened its


seventh depot in Edinburgh. The 122,000 square feet depot employs up to
160 employees and stocks around 3,500 lines.

Hyperama

In September 1997, Hyperama also opened its second branch in West


Bromwich. At 150,000 square feet and costing £6.5m, the new store claims
to be the largest independently-owned cash and carry in the UK. The
warehouse stocks more than 20,000 product lines and incorporates both a
fresh meat counter and in-store bakery. There is also a permanent
exhibition style sampling unit sponsored by Tilda and Lee Kum Kee, and
a printing centre enabling on-site production of both the company’s own
display material and flysheets, and also leaflets for retail customers.

Big Red Shed

In October 1997, the delivered wholesaler, Heath and Smith, a member of


Today’s, opened its new cash and carry, The Big Red Shed in Doncaster.
The department is targeted at the catering trade, mainly public houses
and clubs, complementing the company’s on-trade base.

Wrights of Horwich

In November 1997, Wrights of Horwich, a North West-based company,


opened a 45,000 square feet cash and carry in Bolton. Investment in the
new site was £5m.

 Key Note Ltd 1998 36


Cash & Carry Outlets 8. Current Issues

PACKAGING WASTE LEGISLATION

The adoption of the Producer Responsibility Obligations (Packaging


Waste) Regulations in March 1997, places an obligation on retailers and
wholesalers to recover at least 50% of used packaging by the year 2001.
The issue has caused considerable concern among the wholesaling
industry, which feels that it is not being fairly treated compared with the
large multiple retailers who have considerably more resources available to
deal with packaging issues.

The recent Parker Committee report on Packaging Waste Legalisation


supported the industry that its obligation for packaging waste supplied to
them to small retailers should be removed, as long as the valorisation of
packaging waste passing through the independent trade can be promoted
by other means, e.g. development of a Code of Practice, annual
monitoring, and partnership agreements with local authorities. The
Committee also recommends that the regulations be simplified for the
smaller retail and distributive trades. The Government is currently
considering the Committee’s report and is expected to make a decision on
possible amendments. The Federation of Wholesale Distributors (FWD)
feels that the proposed changes by the Government does not go far enough
and has recently asked the Office of Fair Trading (OFT) to intervene on
grounds that they are being unfairly disadvantaged by the new
regulations.

INFORMATION TECHNOLOGY

The UK wholesaling industry has undergone massive transformation in


recent years, investing heavily in depot infrastructures and operational
systems, in order to compete more effectively against the major grocery
multiples. An area which has made great impact on the wholesaling sector
is that of information technology (IT) systems, which now underpin the
day-to-day operations of almost every depot in the UK. Also, the industry
has started to device applications for technology outside the basic areas of
tilling and stock control. The latest development can be seen in the
introduction of NISA-Today’s Scan Epos system for independent retailers,
which creates an electronic link between Today’s wholesalers and its
customers. The new system is intended to allow the creation of a central
database, where the information will be used for category management
activities and for improving negotiations at Today’s Central Office. The
initiative will strengthen the competitive stance of Today’s wholesalers
and provide its member customers with an effective scanning system. The
combination of better prices and establishment of electronic data
interchange (EDI) links between wholesalers and retailers will
undoubtedly improve customer loyalty.

 Key Note Ltd 1998 37


Cash & Carry Outlets 8. Current Issues

CORPORATE ACTIVITY

Bellevue/BWG

In April 1998, BWG, the grocery distribution subsidiary of Groupe Pernod


Ricard, acquired Belluvue Cash and Carry, the Edinburgh-based cash and
carry wholesaler for an undisclosed sum. BWG operates 30 cash and carry
depots in the Republic of Ireland, under the Value Centre name and 14 in
Northern Ireland, trading as Holmes Cash and Carry. The company also
holds the Mace franchise in Ulster and the Spar franchise in the Republic
of Ireland and the south west of England. Bellevue, with an annual
turnover in excess of £26m, will continue to be operated by the current
management team, while the acquisition will give BWG a strategic step
for the company to expand its wholesale operations into Scotland.

Dhamecha Foods

Dhamecha Foods recently purchased the assets of Today’s member,


Barking Cash and Carry. The acquisition will boost turnover to £120m per
annum for two of London’s largest cash and carry operators, situated on
either side of the city.

AG Parfett and Sons

In June 1998, Stockport-based, AG Parfett and Sons announced the


acquisition of Watson Cash and Carry, based in Halifax. The 47,000
square feet depot brings the company’s total to five and represents its first
move into Yorkshire.

Makro

At the end of 1997, the German group, Metro, purchased the remaining
60% of Makro, the Dutch-owned cash and carry group, for £1.7bn. Makro’s
27 stores will be added to Metro’s portfolio, which totalled 197 stores in 16
European countries. The move will have little impact on the operational
side of the business.

Booker

At the time of writing (October 1998), Budgens had decided to pull out of
merger talks with Booker, the troubled cash and carry group. This is the
second unsuccessful merger bid, following Somerfield, the supermarket
chain’s, attempted merger bid in July 1998, blaming concerns about the

 Key Note Ltd 1998 38


Cash & Carry Outlets 8. Current Issues

commercial risks of the deal. Although Booker is still vulnerable to other


possible takeover bids, the likely contenders being Makro, Wal-Mart and
Costco, it will continue to carry on business as usual and is optimistic
about the future.

DUTY FRAUD

One of the most contentious issues in grocery wholesaling is the impact of


duty fraud and illegal bootlegging activities, which are seriously damaging
the trade. In early 1997, members of the Federation of Wholesale
Distributors (FWD) signed up to a new drinks trading Code of Practice,
which is designed to ensure that they do not engage in illegal activity.
Those who do will be expelled from membership.

As a result of continued pressure from the trade, the Government recently


announced its new offensive against duty fraud and smuggling. H.M.
Customs and Excise will get an additional £35m over the next 3 years to
the year 2001, while an extra 100 custom officers will be deployed, backed
by a tougher policy on restoring seizes vehicles and a new registration
systems for bonded warehouses. According to the latest statistics by H.M.
Customs and Excise, cross-channel smuggling cost the Exchequer £950m
in 1997, while custom seizures amounted to £55m.

 Key Note Ltd 1998 39


Cash & Carry Outlets 9. Forecasts

9. Forecasts

FORECASTS 1998 TO 2002

The key trends in grocery retailing to the year 2002, together with the
impending economic slowdown, suggest that the cash and carry sector will
continue to operate in a difficult and extremely competitive marketplace.

Although concentration of the major multiple depot operators looks set to


continue, the main growth will come from the delivered trade sector,
reflecting the growing importance of buying groups and the growth of
convenience and symbol retailers within the grocery trade.

Faced with a shrinking customer base, cash and carry operators will have
to look for new market opportunities, such as catering, or may even
compete with retailers by moving into warehouse-style trading, such as
Costco, in order to improve growth prospects. They will have to become
more efficient through improvements in customer services and further
investment in new products, e.g. fresh and chilled foods and processes.

Key Note forecasts that the cash and carry sector will grow on average by
2.6% year-on-year from 1998, to £10.7bn in 2002. Its share of the grocery
wholesale market will fall from 61% to 56% over the same period, while
that for the delivered trade will increase from 37% to 42%.

Table 17: Forecast UK Cash and Carry Market at Current Prices


(£m), 1998-2002

£m % Change Year-on-Year

1998 9,698 2.0


1999 9,940 2.5
2000 10,238 3.0
2001 10,494 2.5
2002 10,704 2.0

Source:Key Note

 Key Note Ltd 1998 40


Cash & Carry Outlets 9. Forecasts

PRODUCT DEVELOPMENTS

Cash and carry operators have significantly rationalised their product


ranges over the past decade. This process is expected to continue further,
with the increasing use of point-of-sale (POS) technology, which will
improve stock turnover.

Own-label development will focus on more premium added-value products,


especially in the convenience sector, e.g. chilled foods and snacks, which
offer better margins than the traditional grocery staples.

INFORMATION TECHNOLOGY

One of the biggest developments in the grocery wholesaling market has


been the adoption of information technology (IT) systems, which have
transformed the cash and carry sector, enabling companies to operate
more effectively, efficiently and economically. The future is expected to see
more investment in IT infrastructure, as companies continue the process
of rationalising and streamlining their product ranges. Trading on the
Internet has become a reality and the possibility of new entrants using
this technology, will put increasing pressure on the more traditional
companies.

OVERSEAS EXPANSION

There is considerable potential for overseas expansion for the UK cash and
carry companies, especially in Europe and the Far East. The leading
players, e.g. Booker and Makro, already have a significant presence in
Europe. The future might see more partnership agreements and joint
ventures, e.g. Booker recently set up joint ventures with Sezginler in
Turkey and Inchcape in Thailand, and also formed a partnership with
Jeromimo Martins in Poland. An area which offers tremendous expansion
opportunities is Eastern Europe, where cash and carry distribution is
relatively unexplored.

CONCLUSIONS

While cash and carry will still remain in existence for the foreseeable
future, the key trend is towards multichannel supply chain systems, as
the grocery wholesaling and retailing sector is rapidly consolidating.
Flexibility will be the watchword for the future, as wholesalers need to
respond to the changing needs of their customers and the marketplace.

 Key Note Ltd 1998 41


Cash & Carry Outlets 9. Forecasts

There are still enormous opportunities for expansion in the cash and carry
trade. However, its future success and survival will depend on a changing
of attitudes and becoming more customer focused, as well as building
closer supply relationships that would deliver the breadth of product
range, as well as competitive prices.

 Key Note Ltd 1998 42


Cash & Carry Outlets 10. Company Profiles

10. Company Profiles

INTRODUCTION
The following section contains financial profiles of some of the principal
companies identified as operating within the market sector discussed in
this report. The financial results of some of the important names within
the sector may not be reported if:
• Their principal activities are so varied that their results are not
considered applicable to the survey
• They are no longer trading as separate companies
• Their financial data is very out of date
DEFINITIONS
A company which has a ‘Y’ consolidated value has filed consolidated
accounts for the relevant year.
† — denotes that the growth rate calculation is invalid, because the
figures either move from positive to negative or from negative to positive.
Turnover (Sales)
This includes all income derived from the principal activities of the firm,
net of VAT. It encompasses UK sales, exports and overseas and
intercompany sales.
Pre-Tax Profits
The net trading profit figure after deduction of all operating expenses,
including depreciation and finance charges but before deduction of tax,
dividends, subventions or group relief, and other appropriations. Where
applicable, it will include the share of profits and losses of associated
companies. Items described by the company as exceptional are included;
extraordinary items are excluded.
Profit Margin
Pre-tax profits expressed as a percentage of sales.
Average Remuneration
Total employee remuneration divided by the number of employees.
Sales per Employee
Sales divided by the number of employees.

FURTHER INFORMATION
For more detailed financial information telephone ICC Customer Services
on:0171-426 8511

 Key Note Ltd 1998 43


Cash & Carry Outlets 10. Company Profiles

BATLEYS PLC

Address 977 Leeds Road Huddersfield,


West Yorkshire, HD2 1UN
Tel:01484544211
Company Registration Number 00675326 (incorporated 17th January 1960)
Ult. Holding Co L Batley Holdings Ltd
SIC Codes 6170
Structure
This Huddersfield-based company is one of the leading independent cash and
carry groups in the UK. Batleys operates 14 grocery cash and carry outlets and
eight pet food depots.

Brand Information
The leading own brands are Best Buy and Batley’s Catering.

Recent Developments
The company opened its 15th cash and carry outlet in Nottingham in April
1997, while another is scheduled to open in Cardiff in October 1998.

Financial Profile
Year End 29/04/95 27/04/96 03/05/97 02/05/98
Weeks 52 52 53 52
Consolidated Y Y Y Y
Sales & Profits
Sales (£000) 475,509 488,422 538,709 525,219
Pre-tax Profits (£000) 6,008 6,513 9,529 12,294
Profit Margin (%) 1.26 1.33 1.77 2.34
Year-on-Year Growth
Sales (%) 1.9 2.7 8.2 -0.6
Pre-tax Profits (%) 4.7 8.4 43.5 31.5
Employees
No. of Employees 1,435 1,519 1,611 1,665
Average Remuneration (£) 10,601.4 10,577.4 10,695.0 11,550.2
Sales per Employee (£) 331,365.2 321,541.8 328,084.8 315,446.8

 Key Note Ltd 1998 44


Cash & Carry Outlets 10. Company Profiles

BESTWAY CASH & CARRY LTD

Address Abbey Road, Park Royal,


London, NW10 7BW
Tel:0181 453 1234
Company Registration Number 01207120 (incorporated 11th December 1975)
Holding Co Bestway (Holdings) Ltd
Ult. Holding Co Bestway (Holdings) Ltd
SIC Codes 6150 6170
Structure
Bestway is the largest member of the Landmark Cash & Carry group, with 16
depots, mainly located in the South East. The company has around 39,000
registered customers and employs 1,400 people.

Brand Information
The company’s leading own brands include Best-In, K2, White Pearl, Best Vin
and Park Royal.

Recent Developments
In April 1997, the company launched a 3-week own-label promotion with the
slogan ‘You can’t get better than free’, offering free products on selected grocery
lines.

Financial Profile
Year End 30/06/94 30/06/95 30/06/96 30/06/97
Weeks 52 52 52 52
Consolidated N N N N
Sales & Profits
Sales (£000) 428,420 438,228 449,001 454,244
Pre-tax Profits (£000) 9,268 9,756 9,952 10,941
Profit Margin (%) 2.16 2.23 2.22 2.41
Year-on-Year Growth
Sales (%) -0.6 2.3 2.5 1.2
Pre-tax Profits (%) 13.2 5.3 2.0 9.9
Employees
No. of Employees 718 737 796 832
Average Remuneration (£) 16,149.0 15,594.3 14,427.1 16,308.9
Sales per Employee (£) 596,685.2 594,610.6 564,071.6 545,966.3

 Key Note Ltd 1998 45


Cash & Carry Outlets 10. Company Profiles

BOOKER PLC

Address Portland House, Stag Place,


London, SW1E 5AY
Tel:0171 828 9850
Company Registration Number 00065519 (incorporated 29th December 1900)
SIC Codes 6170
Structure
Booker is one of the UK’s leading food distribution groups. The company’s
wholesale business operates as Booker Belmont Wholesale, which comprises
Booker Cash and Carry (including Nurdin and Peacock) and Booker Wholesale
Foods. Recent consolidation of Booker Belmont Wholesale customer base has
resulted in a total of 439,000 customers, comprising 110,000 in retail (25%) and
329,000 in catering (75%).

Brand Information
Leading own brands include Happy Shopper and Family Choice in groceries,
Chef’s Larder in catering, Malt House Vintners in drinks, and Tuck Shop
confectionery.

Recent Developments
Booker recently completed the strategic review of its cash and carry operation
under the Project Heartland programme, which created five regional
distribution centres. Recently, the company’s cash and carry operation and food
service business was the subject of two unsuccessful bids from leading
supermarket chains, Somerfield and Budgens.

Financial Profile
Year End 31/12/94 30/12/95 28/12/96 27/12/97
Weeks 52 52 52 52
Consolidated Y Y Y Y
Sales & Profits
Sales (£000) 3,722,300 4,222,900 4,442,600 5,265,000
Pre-tax Profits (£000) 69,800 82,800 13,000 71,400
Profit Margin (%) 1.88 1.96 0.29 1.36
Year-on-Year Growth
Sales (%) 5.7 13.4 5.2 18.5
Pre-tax Profits (%) -18.1 18.6 -84.3 449.2
Employees
No. of Employees 21,049 22,191 22,160 24,404
Average Remuneration (£) 11,292.7 11,693.9 12,111.9 12,153.8
Sales per Employee (£) 176,839.8 190,297.9 200,478.3 215,743.3

 Key Note Ltd 1998 46


Cash & Carry Outlets 10. Company Profiles

NISA-TODAY’S (HOLDINGS) LTD

Address Park Farm Road, Foxhill Industrial Estate,


Scunthorpe, South Humberside, DN15 8QP
Tel:01724 282028
Company Registration Number 00980790 (incorporated 29th December 1970)
SIC Codes 8395 6300
Structure
NISA-Today’s is the UK’s largest buying consortium for independent retailers
and wholesalers.

Brand Information
The company’s leading brands include Today’s Price, Right Price, Premier Gold,
Fun Factory and Breakfast Club grocery lines. Kitchen King is the catering
brand, while Cellars International is the drinks brand.

Recent Developments
In early 1998, the company’s Wholesale division, Today’s, was relaunched as
the Today’s Group, complete with new logo and trading divisions. A major
feature of the launch was the development of an interchannel information
technology (IT) system linking retailers, wholesalers and central office.

Financial Profile
Year End 26/03/94 01/04/95 30/03/96 05/04/97
Weeks 52 53 52 53
Consolidated Y Y Y Y
Sales & Profits
Sales (£000) 345,360 384,117 410,193 495,452
Pre-tax Profits (£000) 250 552 793 1,171
Profit Margin (%) 0.07 0.14 0.19 0.24
Year-on-Year Growth
Sales (%) 10.4 9.1 8.8 18.5
Pre-tax Profits (%) -40.9 116.6 46.4 44.9
Employees
No. of Employees 111 116 122 135
Average Remuneration (£) 17,108.1 17,973.3 20,278.7 21,170.7
Sales per Employee (£) 3,111,351.0 3,248,875.0 3,362,238.0 3,600,769.0

 Key Note Ltd 1998 47


Cash & Carry Outlets 10. Company Profiles

MAKRO SELF SERVICE WHOLESALERS LTD

Address Charles House, Albert Street,


Eccles, Manchester, M30 0LJ
Tel:0161 707 1585
Company Registration Number 00973269 (incorporated 25th December 1970)
Ult. Holding Co Metro AG (Germany)
SIC Codes 6170
Structure
Makro is part of the Dutch company, SHV Makro NV, which owns 60% of the
business. In the UK, Makro operates from 27 cash and carry depots, serving a
wide variety of customers, of which 30% are grocery retailers and 40% caterers.
Makro stocks a total of 35,000 lines, of which own brands account for more than
15%.

Brand Information
The company’s leading brands are Aro, Charles House, Village Cross and Baltic
EB.

Recent Developments
At the end of 1997, the German group Metro, which already owned 40% of
Makro, purchased the remaining 60% for £1.7bn.

Financial Profile
Year End 31/12/94 31/12/95 31/12/96 31/12/97
Weeks 52 52 52 52
Consolidated N N N N
Sales & Profits
Sales (£000) 856,169 872,892 909,788 905,676
Pre-tax Profits (£000) 6,909 -6,370 -38,668 -2,843
Profit Margin (%) 0.81 -0.73 -4.25 -0.31
Year-on-Year Growth
Sales (%) 4.2 2.0 4.2 -0.5
Pre-tax Profits (%) 93.1 † -7.0 92.6
Employees
No. of Employees 8,858 8,177 8,545 8,313
Average Remuneration (£) 5,566.6 5,940.6 6,171.6 6,767.2
Sales per Employee (£) 96,654.9 106,749.7 106,470.2 108,947.0

 Key Note Ltd 1998 48


Cash & Carry Outlets 10. Company Profiles

WATSON & PHILIP PLC

Address Strathtay House, Dundee Technical Park,


Dundee, DD2 1TP
Tel:01382 592000
Company Registration Number SC010609 (incorporated 30th December 1919)
SIC Codes 6170 6410
Structure
The Watson & Philip group comprises three divisions: Alldays Stores Ltd,
W and P Foodservices Ltd and Trademarket Ltd. Trademarket is engaged in
grocery wholesaling, operating nine cash and carry outlets, mainly based in
Scotland. In March 1996, Trademarket left the Landmark buying group and
became a member of NISA-Today’s.

Brand Information
As part of NISA-Today’s buying group, Watson & Philip utilises the group’s
own brand. Its leading catering own brand is Orchard Farm, which was
recently introduced into Trademarket cash and carry outlets.

Recent Developments
In June 1997, Trademarket launched Trademarket Plus, a promotional
initiative for its major retail customers. A new delivery service under the
Trademarket Select banner was also introduced, providing independent
retailers with a range of chilled, frozen and ambient products, including drinks
and tobacco.

Financial Profile
Year End 30/10/94 30/10/95 27/10/96 02/11/97
Weeks 52 52 52 53
Consolidated Y Y Y Y
Sales & Profits
Sales (£000) 440,570 497,836 576,602 637,506
Pre-tax Profits (£000) 10,644 18,468 18,763 21,477
Profit Margin (%) 2.42 3.71 3.25 3.37
Year-on-Year Growth
Sales (%) -23.2 13.0 15.8 8.5
Pre-tax Profits (%) -15.0 73.5 1.6 12.3
Employees
No. of Employees 5,968 6,400 7,246 6,676
Average Remuneration (£) 5,895.4 6,175.5 6,156.6 7,086.5
Sales per Employee (£) 73,822.1 77,786.9 79,575.2 93,690.5

 Key Note Ltd 1998 49


Cash & Carry Outlets 11. Further Sources

11. Further Sources

Associations Scottish Federation of Grocers’ &


Wine Merchants’ Associations
Association of Convenience Stores (Scottish Grocers’ Federation)
‘an association for private grocers 222-224 Queensferry Road
and off-licences’ Edinburgh, EH4 2BN
17 Farnborough Street Telephone:0131-343 3300
Farnborough Fax:0131-343 6147
Hampshire, GU14 8AE
Telephone:01252-515001 Provision Trade Federation
Fax:01252-515002 ‘for the provisions trade, specialising
in dairy products, meat products
British Retail Consortium (mainly bacon, ham and
‘represents over 90% of the retail delicatessen) and canned foods’
industry’ 17 Clerkenwell Green
5 Grafton Street London, EC1R 0DP
London, W1X 3LB Telephone:0171-253 2114
Telephone:0171-647 1500
Fax:0171-647 1599 Wholesale Confectionery & Tobacco
Alliance Ltd
Federation of Wholesale ‘publication of a yearbook of the
Distributors confectionery and tobacco sectors’
Berkeley House Hope Cottage
26 Gildredge Road Stoneyfields
Eastbourne Farnham
East Sussex, BN21 4SA Surrey, GU9 8DU
Telephone:01323-724952 Telephone:01252-727769
Fax:01323-732820 Fax:01252-727779

Institute of Grocery Distribution Wholesale Grocers’ Association of


‘the leading publisher of trade Scotland
information on the UK grocery trade’ ‘grocery wholesalers in Scotland’
Grange Lane 30 McDonald Place
Letchmore Heath Edinburgh, EH7 4NH
Watford, WD2 8DQ Telephone:0131-556 8753
Telephone:01923-857141 Fax:0131-558 1623
Fax:01923-852531

 Key Note Ltd 1998 50


Cash & Carry Outlets 11. Further Sources

Periodicals International Journal of Retailing


& Distribution Management
Asian Trader MCB University Press
Asian Trader Publications Ltd 60-62 Toller Lane
Garavi Gujorat House Bradford
1-2 Silex Street West Yorkshire, BD8 8BY
London, SE1 0DW Telephone:01274-777700
Telephone:0171-928 1234 Fax:01274-785200
Fax:0171-261 0055 WWW:http://www.mcb.co.uk

Cash & Carry Management Professional Wholesaling


Winlove Publications Ltd Hamerville Magazines Ltd
4 High Street Regal House
Croydon, CRO 1YA Regal Way
Telephone:0181-688 2696 Watford
Fax:0181-688 2726 Hertfordshire, WD2 4YJ
Telephone:01923-237799
• Convenience Store Fax:01923-246901
• Forecourt Trader
• Multiple Buyer Retailers PRO Wholesaler
• The Grocery Federation of Wholesale
• Off Licence News Distributors
William Reed Publishing Ltd 3rd Floor
Broadfield Park Berkeley House
Crawley 26 Gildredge Road
West Sussex, RH11 9RT Eastbourne
Telephone:01293-613400 East Sussex, BN21 4SA
Fax:01293-613156 Telephone:01323-724952
www://www.foodanddrink.co.uk Fax:01323-732820

Good Food Retailing Retail Grocer


Stanstead Publications Ulster Magazines Ltd
PO Box 1525 9 Upper Crescent
Gillingham Belfast, BT7 1NT
Dorset, SP8 5TA Telephone:01232-230425
Telephone:01963-371271 Fax:01232-243595
Fax:01963-371270
Retail Forecourt &
Independent Retail News Convenience Store
Reed Business Information Ltd Penton Piblications Ltd
Quadrant House The Terrace
The Quadrant 14 High Street
Sutton Holywood
Surry, SM2 5AS Co. Durham, BT18 9AZ
Telephone:0181-652 3500 Telephone:01232-424004
Fax:0181 652 8932 Fax:01232-424224
WWW:http://www.reedbusiness.com

 Key Note Ltd 1998 51


Cash & Carry Outlets 11. Further Sources

Retail News • The Grocer Food & Drink


Tara Publishing Co Ltd Directory
Poolbeg House • The Grocer Marketing Directory
1-2 Poolbeg Road William Reed Publishing Ltd
Dublin 2, Broadfield Park
Republic of Ireland Crawley
Telephone:00-3531 671 9244 West Sussex, RH11 9RT
Fax:00-3531 671 9263 Telephone:01293-613400
Fax:01293-613156
Retail Newsagent www:http://www.foodanddrink.co.uk
Newtrade Publishing Ltd
Robert Taylor House WCTA: Yearbook
11 Angel Gate Wholesale Confectionery & Tobacco
City Road Alliance Ltd
London, EC1V 2PT Hope Cottage
Telephone:0171-837 3168 Stoneyfields
Fax:0171-837 0821 Farnham
E-mail:rn@newtrade.demon.co.uk Surrey, GU9 8DU
Telephone:01252-727769
Scottish Grocer Fax:01252-727779
Peebles Publishing Group Ltd
Bergius House
Clifton Street General Sources
Glasgow, G3 7LA
Telephone:0141-331 1022 ACNielsen MEAL Ltd
Fax:0141-331 1395 7 Harewood Avenue
London, NW1 6JB
Telephone:0171-393 5070
Directories Fax:0171-393 5088

European Retail, Wholesale & Ashgate Publishing Co. Ltd


International Trades Update Ashgate House
Kensington group Unit 2
111 Southwork Street Lower Farnham Road
London, SE1 0JF Aldershot
Telephone:0171-717 0077 Hampshire, GU12 4DY
Fax:0171-717 1000 Telephone:01252-333871
E-mail:postmaster@kenpubs.co.uk • Sources of Unofficial UK Statistics
— D. Mort & L. Siddall
FWD: Yearbook
Federation of Wholesale
Distributors
Berkeley House
26 Gildredge Road
Eastbourne
East Sussex, BN21 4SA
Telephone:01323-724952
Fax:01323-732820

 Key Note Ltd 1998 52


Cash & Carry Outlets 11. Further Sources

ASLIB: The Association for Interstat


Information Management IRN
Staple Hall Davis House
Stone House Court 129 Wilton Road
London, EC3A 7PB London, SW1V 1LD
Telephone:0171-903 0000 Telephone:0171-416 8107
Fax:0171-903 0011 Fax:0171-828 2030
WWW:http://www.aslib.co.uk WWW:http://www.irnxxx.co.uk
• ASLIB Directory of Information
Sources in the UK
HBI UK Information Sources
BMRB International Limited
Hadley House Hoppenstedt Bonnier
79-81 Uxbridge Road Information UK Ltd
Ealing, W5 5SU Field House
Telephone:0181-566 5000 72 Oldfield Road
Fax:0181-579 9809 Hampton
Middlesex, TW12 2HQ
British Overseas Trade Board
c/o Arlington Management ICC Information Ltd
Publications Ltd Telephone:0181-481 8800
25 New Bond Street Fax:0181-941 6014
London, W1Y 9HD msn:ICC_FRMMGR @ msn.com
Telephone:0171-495 1940 internet:webmaster @ icc.co.uk
Fax:0171-409 2557
• Market Search ICC can provide information via:
TM
Export Market Information Centre • Juniper (Windows online
Kingsgate House service), updated daily
66-74 Victoria Street • Plum (Internet), updated daily
London, SW1E 6SW • Blueberry (CD-Rom — Credit
Telephone:0171-215 4954/4955 Index, Company Index and Broker
• Sources of Statistics and Market 50), updated monthly
Information • Damson (Bulk Data Supply via
EDD, EDI, ISDN, magnetic tape
Headland Press and DAT)
1 Henry Smith’s Terrace
Headland
Cleveland, TS24 0PD
Telephone:01429-231902
Fax:01429-861403
• Business Information Sourcebook
• How to Access Market Research
Information from your
Microcomputer

 Key Note Ltd 1998 53


Cash & Carry Outlets 11. Further Sources

Databases available via Juniper, Key Note Ltd


Plum, Blueberry and Damson Telephone:0181-481 8750
include: Fax:0181-783 0049

• Directory information on all live • A Guide to Buying Market


and dissolved companies Research
• Analysed financial information of • The Guide: The European
every trading British company Directory of Marketing Research
• Database of all 4.9 million Sources £165
directorships • The Key Note Guide to Local
• Images of the latest directors’ Government Money £35
reports and accounts • The Key Note Guide to
• Full text annual reports and Teleworking £35
accounts of UK quoted PLCs • The Key Note Guide to TQM £35
• Stockbroker research • 1992:The Single European Market
• Shareholders information £58
• A Guide to Going Online £65
ICC Business Publications Ltd • The Source Book £95
Telephone:0181-481 8720 • UK Market Performance Analysis
Fax:0181-783 1940 £225

Business Ratios Plus Related Key Note Reports


• Cash and Carry • CTNs
• Grocery Wholesalers • Convenience Retailing
• The Retail Industry • Own Brands
• Supermarkets • Petrol Forecourt Retailing
• Wine & Spirit Merchants • Supermarkets & Superstores
£249 each • The Take Home Trade
£245 each
ICC Financial Surveys
• Grocery Wholesalers & • UK Drinks Market
Supermarkets • UK Food Market
• Tobacco & Confectionery • Retailing in the UK
Wholesalers • Wholesaling in the UK
• The Wine & Spirits Industry £435 each
£249 each

 Key Note Ltd 1998 54


Cash & Carry Outlets 11. Further Sources

Government Publications Financial Statistics


£22.50 monthly
H.M. Customs & Excise
New Kings Beam House National Food Survey 1996
22 Upper Ground £27.00
London, SE1 9PJ
Telephone:0171-620 1313 Monthly Digest of Statistics
£12.00
Available from:
Social Trends Annual
HMSO Publications Centre PC51D £37.95
Room 308
3rd Floor UK National Accounts 1996
51 Nine Elms Lane £28.95
London, SW8 5DT
Telephone:0171-873 0011 Other Sources
(postal services)

or ACNielsen
Nielsen House
HMSO Bookshop Headington
49 High Holborn Oxford, OX3 9RX
London, WC1V 6HB Telephone:01865-742742
Telephone:0171-873 0011 Fax:01865-742222
(personal callers)
Business Information Futures
Office for National Statistics 1 Henry Smith’s Terrace
1 Drummond Gate Headland
London, SW1V 2QQ Cleveland, TS24 0PD
Telephone:0171-533 5678 Telephone:01429-231902
Fax:0171-533 5679 Fax:01429-861403
WWW:http://www.ons.gov.uk
ERC Statistics International Ltd
Department of Trade and Industry 5-11 Shorts Gardens
Business Monitor Series: London, WC2H 9AT
PA1003:Size Analysis of UK Telephone:0171-497 2312
Businesses Fax:0171-497 2313
SDA25:Retailing
SDA26:Wholesaling Gira Group
SDM28:Retail Trade Grilly
01220 Divonne Les Bains
Annual Abstract of Statistics France
£37.50 Telephone:00-33 50 40 24 00
Fax:00-33 50 40 24 02
Economic Trends www:http://www.gira.com
£21.00

Family Spending 1996


£35.95

 Key Note Ltd 1998 55


Cash & Carry Outlets 11. Further Sources

IGD Research Services Stats (MR)


Institute of Grocery Distribution Gloucester House
Grange Lane Smallbrook Queensway
Letchmore Heath Birmingham, B5 4HP
Watford, WD2 8DQ Telephone:0121-631 3232
Telephone:01923-857141 Fax:0121-631 3637
Fax:01923-852531

International Trade Centre


UNCTAD/GATT
54-56 Rue Monbrillant
CH-1202 Geneva
Switzerland
Telephone:00-41 730 01 11
Fax:00-41 733 44 39

Marketpower Ltd
84 Uxbridge Road
London, W13 8RA
Telephone:0181-840 5252
Fax:0181-840 6173

MSI UK
Viscount House
River Lane
Saltney
Chester, CH4 8QY
Telephone:01244-681424
Fax:01244-681457

Maurice Palmer Associates Ltd


Chesterton Tower
Chapel Street
Chesterton
Cambridge, CB4 1DY
Telephone:01223-68705
Fax:01223-324125

The Oxford Institute of Retail


Management
Kennington Road
Kennington
Oxford, OX1 5NY
Telephone:01865-735422
Fax:01865-736374

 Key Note Ltd 1998 56


Cash & Carry Outlets Key Note Research

Key Note Research

Key Note is a leading supplier of market information, publishing an extensive


range of consumer, industrial, business-to-business and services titles. With 17
years’ experience, Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and
covers the period from the last edition of the report to the current day.

The internal ICC database is used to select company information relevant to


the particular report. The financial information extracted may then be backed
up by further online searching on particular companies.

Trade sources, such as trade associations, trade journals and specific


company contacts, are invaluable to the Key Note research process.

Secondary data is provided by BMRB International (TGI) and ACNielsen


MEAL for consumer/demographic information and advertising expenditure. In
addition, various official publications published by the ONS, etc. are used for
essential background data and market trends.

Interviews are undertaken by Key Note for various reports, either face-to-face
or by telephone. This provides qualitative data (‘industry comment’) to enhance
the statistics in reports; questionnaires may also be used.

Field research is commissioned for various consumer reports and market


reviews, and is carried out by either The Gallup Organization or BMRB
International (BMRB Access).

Key Note estimates are derived from statistical analysis and trade research
carried out by experienced research analysts. Up-to-date figures are inserted
where possible, although there will be some instances where: a realistic
estimate cannot be made (e.g. the number of disabled people in the UK); or
external sources request that we do not update their figures.

Key Note Publishing Manager, 1998

© Key Note Ltd 1998 57


Cash & Carry Outlets The Key Note Range of Reports

The Key Note Range of Reports

Key Note publishes over 100 titles each year. The total range covers 200
separate titles covering consumer, industrial and service sectors.
Title Edition Published Title Edition Published
Accountancy 3 1998 Cash & Carry Outlets 14 1998
Access Control 1 1998 Catering Equipment 4 1998
Adhesives 10 1992 CDs & Tapes 1 1997
Advertising Agencies 7 1998 CD-ROM 1 1992
Aerospace 10 1996 Charities 5 1997
After Dinner Drinks 8 1994 Chemical Industry 6 1997
Agricultural Machinery 11 1997 Childcare 1 1998
Agrochemicals & Childrenswear 2 1998
Fertilizers 1 1993 Chilled Foods 9 1998
Airlines 12 1997 China & Earthenware 15 1998
Airports 4 1998 Cider 1 1993
Animal Feedstuffs 9 1997 Cigarettes & Tobacco 13 1998
Automatic Vending 12 1997 Cinemas & Theatres 7 1998
Automotive Services 2 1998 Civil Engineering 7 1998
Autoparts 13 1998 Closed Circuit TV 2 1998
Clothing Manufacturing 11 1998
Baby Products 8 1994 Clothing Retailing 2 1997
Baths & Sanitaryware 8 1996 Commercial Radio 5 1998
Betting & Gaming 11 1998 Commercial TV 5 1997
Bicycles 8 1995 Commercial Vehicles 9 1997
Biotechnology 4 1991 Computer Hardware 2 1997
Biscuits & Cakes 8 1996 Computer Services 4 1997
Book Publishing 13 1997 Computer Software 2 1998
Bookselling 9 1998 Confectionery 17 1998
Bottled Waters 3 1995 Consumer Magazines 9 1997
Bread Bakers 13 1997 Contract Catering 11 1998
Breakfast Cereals 9 1995 Contract Cleaning 13 1998
Breweries & the Contraceptives 1 1993
Beer Market 17 1998 Convenience Retailing 9 1996
Bricks & Tiles 11 1996 Corporate Giftware 1 1997
Bridalwear 1 1997 Corporate Hospitality 1 1998
Builders’ Merchants 10 1996 Cosmetics & Fragrances 12 1996
Building Contracting 4 1994 Cosmetic Surgery 2 1997
Building Materials 8 1997 Courier &
Building Societies 10 1996 Express Services 9 1998
Business Press 9 1996 Credit & Other
Business Travel 7 1997 Finance Cards 11 1996
Bus & Coach Operators 3 1997 CTNs 7 1994
Cutlery 8 1991
Cable & Satellite TV 7 1998
Cabling & Wiring 1 1996 Dark Spirits
Cameras & Camcorders 2 1993 & Liqueurs 1 1997
Camping & Caravanning 11 1997 Debt Management
Canned Foods 11 1997 & Factoring 12 1998
Car Dealers 12 1997 Defence Equipment 7 1998
Carpets & Department Stores 7 1990
Floorcoverings 13 1996 Design Consultancies 2 1996

© Key Note Ltd 1998 58


Cash & Carry Outlets The Key Note Range of Reports

Title Edition Published Title Edition Published


Direct Marketing 11 1998 Health Clubs &
Disposable Leisure Centres 2 1997
Paper Products 7 1997 Health & Fitness
Distillers (Whisky) 10 1994 Equipment 4 1990
Distillers Health Foods 18 1998
(White Spirits) 7 1990 Heating, Ventilating &
DIY 10 1992 Air Conditioning 7 1997
Domestic Heating 10 1997 Heavy Industrial Cleaning 1 1996
Dry Batteries 8 1997 Home Furnishings 12 1998
Dry Cleaning & Home Leisure 1 1993
Laundry Services 1 1998 Home Shopping 6 1998
Horticultural Retailing 13 1998
Electrical Contracting 5 1998 Hot Drinks 5 1992
Electrical Goods Retailing 2 1991 Hotels 13 1998
Electricity 1 1996 Housebuilding 12 1997
Electronic Component Household Appliances
Distribution 10 1998 (Brown Goods) 7 1996
Electronic Component Household Appliances
Manufacturing 9 1997 (White Goods) 13 1998
Electronic Games 1 1994 Household Furniture 13 1998
Employment Agencies 13 1998 Household Soaps
Equipment for the Disabled 1 1995 & Detergents 11 1997
Equipment Leasing 10 1995
Estate Agents 9 1997 Ice-Creams &
Ethnic Foods 8 1997 Frozen Desserts 5 1996
Exhibitions & Conferences 5 1998 In-Car Entertainment 1 1995
Independent TV
Fast Food & Home & Film Production 1 1991
Delivery Outlets 14 1997 Industrial Fasteners 6 1997
Fibres 6 1997 Industrial Pumps 4 1994
The Film Industry 2 1998 Industrial Valves 6 1997
Finance Houses 10 1996 Insulation Products 7 1993
Fire Protection Insurance Brokers 7 1992
Equipment 4 1997 Insurance Companies 8 1998
Fish & Fish Products 8 1996 Internet Usage in Business 2 1998
Fitted Kitchens 7 1996 Internet Usage in the Home 1 1996
Floristry 1 1998 IT Training 4 1998
Flour Confectionery 5 1990
Food Flavourings Jewellery, Watches &
& Ingredients 7 1996 Fashion Accessories 15 1998
Football Clubs
& Finance 1 1997 Kitchenware 3 1997
Footwear 11 1997
Franchising 6 1998 Laboratory Equipment 1 1997
Freight Forwarding 11 1998 Lighting Equipment 12 1997
Frozen Foods 16 1997 Lingerie 3 1997
Fruit Juices & Low-Alcohol Drinks 3 1995
Health Drinks 7 1997
Fruit & Vegetables 13 1998 Machine Tools 11 1997
Further & Mail Order 8 1991
Higher Education 1 1996 Management
Consultants 6 1998
Garden Equipment 8 1998 Meat & Meat Products 13 1998
Giftware 7 1997 Mechanical Handling 7 1996
Glassware 9 1997 Medical Equipment 12 1998
Greetings Cards 14 1998 Men’s Magazines 1 1996
Metal Recycling 1 1996
Hand Luggage & Milk & Dairy Products 13 1997
Leather Goods 9 1997 Mixed Retail Businesses 7 1996

© Key Note Ltd 1998 59


Cash & Carry Outlets The Key Note Range of Reports

Title Edition Published Title Edition Published


Mobile Phones 2 1998 Retail Chemists
Mortgage Finance 2 1997 & Drugstores 9 1998
Road Haulage 15 1997
Networks 1 1996 Rubber Manufacturing
Newspapers 13 1997 & Processing 7 1995
New Trends in Retailing 2 1990
Nursing Care 1 1996 Sauces & Spreads 6 1997
Scientific Instruments 5 1992
Office Furniture 14 1998 Scrap Metal Processing 8 1995
Online Databases 5 1990 Security 7 1991
Ophthalmic Self-Assembly Furniture 7 1992
Goods & Services 11 1997 Shopfitting 8 1998
OTC Pharmaceuticals 8 1997 Short Break Holidays 2 1998
Own Brands 7 1997 Showers & Shower
Accessories 3 1994
Packaging (Food & Drink) 3 1998 Slimming Market 7 1998
Packaging (Glass) 10 1995 Small Domestic Electrical
Packaging Appliances 7 1998
(Metals & Aerosols) 10 1997 Snack Foods 12 1997
Packaging Soft Drinks (Carbonates &
(Paper & Board) 11 1998 Concentrates) 12 1996
Packaging (Plastics) 12 1998 Sports Clothing
Paints & Varnishes 12 1998 & Footwear 7 1995
Paper & Board Sports Equipment 10 1997
Manufacturing 11 1997 Stationery
Passenger Shipping 4 1993 (Personal & Office) 14 1998
Pensions 2 1998 The Steel Industry 12 1996
Perishable FMCGs 1 1994 Stockbroking 4 1996
Personal Computers Supermarkets &
& Workstations 8 1990 Superstores 15 1998
Pesticides 7 1990
Pet Foods 11 1995 The Take Home Trade 11 1996
Petrol Forecourt Telecommunications 13 1998
Retailing 1 1997 Timber & Joinery 14 1998
Photocopiers & Toiletries 11 1996
Fax Machines 9 1997 Toys & Games 15 1997
Photographic Services 1 1995 Tourism in the UK 7 1991
Plant Hire 10 1995 Tourist Attractions 4 1998
Plastics Processing 8 1997 Training 7 1998
Premium Lagers, Travel Agents & Overseas
Beers & Ciders 3 1997 Tour Operators 13 1998
Prescribed TV & Video Rental 1 1994
Pharmaceuticals 12 1997 The Under-5s Market 1 1997
PR Consultancies 2 1990 The Under-16s Market 1 1998
Printed Circuits 7 1993
Printing 4 1997 Vehicle Leasing & Hire 16 1998
Prison Services 1 1994 Videoconferencing 1 1998
Private Healthcare 14 1998 Video Retail & Hire 5 1995
Process Plant 7 1998 Vehicle Security 3 1998
Protective Clothing
& Equipment 2 1998 Wallcoverings 13 1998
Public Houses 14 1998 Water Utilities 2 1997
Waste Management 3 1998
Rail Travel 2 1998 White Spirits
Ready Meals 4 1998 & Speciality Drinks 1 1997
Records & Tapes 7 1990 Windows & Doors 13 1998
Restaurants 13 1998 Wine 13 1998
Retail Branch Banking 9 1997 Women’s Fashions 6 1991
Women’s Magazines 9 1995

© Key Note Ltd 1998 60


Cash & Carry Outlets The Key Note Range of Reports

Title Edition Published Title Edition Published


UK Pet Market 1 1994
Market Reviews, Euroviews and Guides Personal Finance
Broadcasting in the UK 2 1995 in the UK 5 1996
Business Information UK Pharmaceutical
in the UK 2 1998 Industry 2 1995
UK Catering Market 10 1997 UK Publishing 6 1998
UK Chemical Industry 2 1993 Retailing in the UK 7 1998
UK Clothing & Footwear 6 1996 UK Security 6 1997
UK Computer Market 6 1997 UK Soft Drinks 2 1994
UK Construction UK Sports Market 6 1996
Industry 6 1997 UK Telecommunications 1 1992
Corporate Services UK Toiletries &
in the UK 1 1994 Cosmetics Market 1 1992
UK Defence Industry 4 1997 UK Travel & Tourism 6 1997
UK Distribution 5 1996 UK Wedding Market 1 1993
UK DIY & Home Wholesaling in the UK 1 1994
Improvements 5 1997 Youth Market
UK Drinks Market 10 1997 in the UK 1 1994
UK Education Industry 2 1994 Eastern Europe 1 1990
The Energy Industry Telecommunications
in the UK 3 1998 in Europe 2 1990
UK Food Market 10 1998 Toiletries &
The Grey Market Cosmetics (Euro) 1 1990
in the UK 1 1994 The Guide 2 1996
UK Healthcare 6 1997 Guide to Going Online 1 1990
UK Household Market: Guide to Marketing Research
Furniture Fittings & Decor 1 1992 in Europe 1 1990
UK Household Market: Household The Source Book 2 1990
Appliances & Housewares 1 1992 The Key Note
UK Insurance Market 4 1997 Guide to Local
UK Leisure & Recreation 8 1997 Government Money 1 1994
UK Motor Industry 6 1998 The Key Note
Multimedia in the UK 1 1994 Guide to Teleworking 1 1995
UK Office Equipment 4 1998 The Key Note
UK Packaging Industry 3 1993 Guide To TQM 1 1993
Passenger Travel
in the UK 2 1995

© Key Note Ltd 1998

All rights reserved.

No part of this publication may be reproduced, copied, stored in an electronic retrieval system
or transmitted save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988.

Published by Key Note Ltd


Field House, 72 Oldfield Road, Hampton,
Middlesex TW12 2HQ
Tel:0181-481 8750 Fax:0181-783 1940

Stringent efforts have been made by Key Note to ensure accuracy. However, due principally
to the fact that data cannot always be verified, it is possible that some errors or omissions
may occur; Key Note cannot accept responsibility for such errors or omissions. Details
supplied by Key Note should only be used as an aid, to assist the making of business
decisions, not as the sole basis for taking such decisions.

© Key Note Ltd 1998 61