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Future of UK Wholesaling
The UK's grocery wholesaling market will reach £18.3bn by 2009, from £16.7bn today, according to Food and grocery researcher IGD. This steady overall growth reflects stronger performance for delivered (3.5% per annum forecast) and near stagnation (0.5% growth only) for Cash & Carry.
Grocery Wholesaling 2005 predicts that the market for delivered groceries will reach £8.5 billion in 2009, boosted by the ongoing growth of symbol groups and via forecourt retailing and foodservice. Cash & Carry is expected to reach £9.8 billion.
IGD predicts a continuation of recent consolidation in the wholesale sector, as seen in the Bestway acquisition of Batley's, as well as in the convenience market; it also thinks franchising will be a driver of growth. Suppliers say the outlook is positive, with 88% saying they are committed to investing in the wholesale sector, while 66% are devoting more resource to it than last year.
Eighty-six percent of suppliers say they believe that communication between wholesalers and suppliers is continually improving: however, IGD Chief Exec Joanne Denney-Finch says that the improvement of communication still constitutes 'a key opportunity' for the sector, both in information flow and collaborative planning.
IGD surveyed a wide range of branded and own label suppliers - results are based on responses from 89 companies. The report is described in detail at www.igd.com/gw2005 .
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