A south London convenience retailer has questioned Booker's support for independent retailers after a nearby Budgens store was converted to Londis just weeks after he invested around £150,000 refurbishing his own Londis store.
The retailer said he feels being blindsided by Booker as the other Londis store, despite being in forecourt, has all the Londis convenience store offers and price marked products (PMPs).
Retailer Sudesh Patel, owner of Londis Coulsdon in Surrey, said he made the six-figure investment earlier this year with Booker's knowledge and support, only to be informed shortly before completion that a neighbouring MFG forecourt store, formerly trading as Budgens, would also reopen under the Londis fascia.
The two stores are located just a short distance apart.
Speaking to Asian Trader, Patel said he undertook the extensive refurbishment in February after working closely with Booker on the project. According to him, Booker provided a detailed 12-week refit plan, installed new fascia signage, in-store branding, digital advertising screens and helped redesign the store layout.
As part of the refurbishment, Patel also expanded his food-to-go proposition, installing new coffee, hot food, hot dog, slush and milkshake machines in what Booker described as a "treat shop" positioned near the store entrance.
Londis retailerImage from Sudesh Patel
"The results were really encouraging," Patel told Asian Trader. "Our hot food sales increased around threefold after the refit."
However, Patel said he was informed around five weeks ago by his Booker area manager that the nearby Budgens forecourt store would be converted to Londis because it no longer met the size criteria for the Budgens fascia.
The store has since reopened as a Greggs Londis convenience store and is operational since last week.
Patel added that he had understood two Londis stores would not normally be located in such close proximity and raised the issue with Booker after learning of the conversion but did not receive any conceret reply from Booker's area manager.
Patel said he has already begun seeing an impact on some of the categories he expanded during the refurbishment.
"Our coffee sales have fallen and our hot food sales have started to decline since the other store opened," he said. "Those were the areas we invested in most heavily.
"My machines are going to become obsolete. If I am going to sell just two or three coffees a day, then what's the point in keeping the machines? I need to generate money in the store afterall."
Patel added that the other store is unlike any forecourt store since it stocks PMPs and all the Londis convenience store offers.
"My store's differential factor is now gone. This store, which is just a few minutes walk away, now also has same offers and PMPs. I have never seen PMPs in any other forecourt store."
Londis retailerImage from Sudesh Patel
Patel said his main frustration was not this development itself, but also what he believes as a lack of communication during the planning process, saying he was only informed about the other Londis store coming nearby only after the refit of his store was almost over.
"Booker knew about my investment and knew about the plans for the other store. Had they told me earlier, I could have made an informed business decision," Patel said.
"If I'd known before spending £150,000 that another Londis was opening a few yards away, I would have considered my options," he said. "I would have figured out some other group to align and work with.
"This isn't a small investment for an independent retailer."
Patel also claimed that several elements of the support package agreed as part of his refit, including promotional materials and in-store marketing assets, were delayed by several weeks after the refurbishment was completed.
Londis retailerImage from Sudesh Patel
Booker promised a grand opening after refit but delayed to deliver by six weeks. Patel said he feels that the delay was a strategy.
"It feels like independent retailers are not being supported in the way we were promised," he said. "All Booker cares about is the bigger boys. It seems that Booker is no more thoughtful towards independents, the single shop operators. It is so unfair!
"Had they cared even a little about me, they would have come to me first and told their plans atleast. Or warned me when I told the about my refit investment. I would have made better informed decision."
Patel said he is also disappointed by Booker team as despite his mails to retail managing director, Colm Johnson, he did not get even a single reply or acknowledgement from them.
Responding to Asian Trader, a Booker spokesperson said, "Our priority is supporting the success of independent retailers, and in turn ensuring local communities benefit from great choice, convenience and service.
"We're in regular contact with both the owner and the manager to ensure the store continues to thrive."
Patel is set to have a meeting with Booker team on Wednesday (July 29) to decide the future course of action.