A rumour that a Cash & Carry is working on a deal to buy 99p Wholesaler has been burning up the wires of Wholesale forums of late. Bloggers and journalists are suggesting that Booker Cash & Carry is the company in question. The company, a major powerhouse in the industry currently taking over £600 Million in online sales is said to have bought 99p wholesaler.
Suleman Sacranie has figured out how to inject hysteria into the process of shop keepers hunting the web, this resulting in speculation that the company has been taken over by various online forums. 99p Wholesaler represents what Groupon did but in a totally different sector.
99p Wholesaler negotiates deals with manufacturers directly and by keeping their overheads to a minimum whilst passing on great discounts to their customers. Retailers can simply register on the website then receive a no-obligation e-mail every morning to highlighting Daily Offers that are available for just 24 hours. If they like the offer they can just order them there and then and they will be delivered directly to their door.
99p Wholesaler, a name following on from the company’s consumer site 99p Shopper presents an online audience of Retailers & Wholesalers with deep discounted products compared to their usual visit at the Cash & Carry.
Unlike so many dot-com rockets, 99p Wholesaler is a real business, occupying its own warehouse in Leicester, the company continues to build its database and raised investment from London based Private Equity firm Equity Plus Partners.
Suggestions that a bid of £10 Million and £20 Million have been denied and company has made a formal announcement that no such offer has been received, Atul Devani of Equity Plus Partners Said, "The Company has been receiving an unprecedented number of calls from the press and trade to confirm if the Company had been sold. We have invested in a dedicated and talented management team who continue to remain focussed on launching the exciting 2nd and 3rd phases of our business which will further enhance our offering bringing a greater number of suppliers and ranges of products and change the way business is done in this industry”.
Suleman Sacranie, Managing Director also commented, “Our aim has not been to compete directly with these outlets that will often stock a higher range of products, but to quench the thirst of Independent Retailers to find deals at better prices, with the convenience of having goods delivered free, directly to their door. We aim to make that easier by providing a platform that makes these deals available directly to the retailer”
What 99p Wholesaler is clearly able to do is provide daily offers to an industry which is always after deals, with Cash & Carry having to plan their offers and deals one year in advance it gives them a great edge over there competition.
Such a deal would put Cash & Carry in the position of selling directly to Internet Users, in this case, trade days which are held by all wholesalers during the week. The market is expected to grow rapidly and is currently coveted by Booker but it is clear to see by bringing selected offers together 99p Wholesaler are able to beat the prices of their competition.
The acquisition talks come as 99p Wholesaler is developing a new version of its website to progress with Phase 2 and Phase 3 of the company’s portal.
99p Wholesaler model has caught on because it is improved on the idea of providing offers to customers that are always on the hunt for deals especially when an average shop keeper visits the Cash & Carry 3 times a week the number of repeat visitors gives 99p Wholesaler an advantage.
In an interview, 99p Wholesaler founder and Managing Director Suleman Sacranie said he wouldn’t “comment on any speculation” about the company being sold.
The University Of Leicester drop out has clearly developed a concept that has got an industry used to stocking up there vans talking, question mark remains if the company decides to cash in or continue to develop what has become an industry game changer.