Tesco’s shake-up of the wholesale market is expected to deliver operational savings of £200m by the end of the third year, the retailer says.
Announcing pre-tax profits of £1.3bn for the year to February, Tesco boss Dave Lewis said: I am delighted to have completed our merger with Booker, and we are moving quickly to deliver synergies and access new growth, making the most of the complementary skills in our combined business.”
“The integration of Booker is well underway and we are focused on delivering the identified synergies to create value for all stakeholders. We anticipate a synergy benefit of c.£60m in the first year, growing to a cumulative c.£140m in the second year and reaching a recurring run-rate of c.£200m per year by the end of the third year.”
The £4bn takeover of Britain’s largest wholesaler by Britain’s largest retailer was completed in February. Analysts predict that the combination of the two giants could account for 20% of the wholesale market.