The poultry supplier’s procurement category manager Stuart Read said that companies which completely separate their retail arms will have a “more flexible and dynamic” company that is better able to respond to the demands of customers.
He added that the move would also help to distance the retail company from the wholesale company, which could be an advantage for some retailers as there “is no baggage” associated with the new retail arm that there may be with the incumbent wholesaler.
Read told Utility Week: “Those companies that do fully separate will have a retail arm that is more flexible and more dynamic and will do better in winning business.
“I would probably be as a buyer more open to talking to discussing if I knew that they were completely independent.”
His view was supported by B&Q energy and water analyst Sue Haywood who also told Utility Week that being supplied by a legally separated retailer “would be something we would look at”.
She added that the most important thing for B&Q was for the water retailer to have a good relationship with the wholesaler “as they are going to have go and knock down doors for you”.
“If they are set up right, then they will have that good relationship.”