Soaring Costs Force Booker To Introduce A Delivery Fee

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Booker is introducing a delivery fee for retailers in the convenience sector to offset rising costs.

From 28 February, members of its Premier and Family Shopper symbol chains will be charged £29.95 for each delivery. The fee for all other retail customers will be £34.95. Budgens and Londis stores are unaffected.

The Tesco-owned wholesaler stated that it was a transparent fixed cost and will not fluctuate, regardless of the size of the order. Its minimum drop of £1,000, excluding tobacco, still applies.

The introduction of the charge is said to be due to increasing driver costs and growing charges for vehicles, fuel and equipment, as well as the challenges posed by Covid-19.

Following a review, Booker said it had no option but to introduce a delivery fee to provide a sustainable delivery service to all retailers.

A spokesperson for the wholesaler commented: “We take these changes very seriously and regrettably have been forced to take this difficult decision due to rising costs.”

Reports highlighted that the fee will add to inflationary pressures already faced by independent retailers as a result of rising energy bills and wages.

It was revealed last week that Nisa is planning to charge retailers for the cost of fuel on some deliveries as it grapples with the impact of rising costs.

NAM Implications:
  • The only way of dilution this 3% charge (as a %) is by increasing the order size.
  • Otherwise move to a different, carriage-free wholesaler…
  • Time for suppliers to reassess their access to the independent trade?

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