One in five independent retailers are making more visits to wholesalers in an effort to manage their costs more efficiently.
According to the Lumina Intelligence Wholesale Market report, the overall frequency of visits to wholesalers by the total retailer sector was down 7% in 2022 when compared to 2019 figures, however 19% of independents are visiting their depot or cash and carry more frequently to avoid paying for delivery.
Conversely, one in ten symbol group operators are ordering more through delivery to save on fuel costs, highlighting the different methods retailers are using to save money. Currently, six in ten retailers use delivery services when purchasing from wholesalers, the research found.
The overall decline in wholesale visits was attributed to cash and carry customers, who shop at depots 10% less frequently versus 2019.
The report revealed that the main shop mission has become the most popular among retailers visiting wholesalers, with rising costs prompting retailers to avoid regular small purchases and opt for bigger top-up.
Promo weeks and event days being used to drive footfall and build loyalty more effectively were also highlighted in the report. “Worsening cost pressures are prompting behavioural changes in wholesale customers. Both retailers and foodservice operators are opting for bigger, main shops to maximise savings. Lumina expects cost pressures to increase into the Winter months with a looming recession threatening a tough period, especially for the foodservice market,” said insights manager Katherine Prowse.
The report also found that more than half of business leaders across the grocery retail sector (54%) are expecting trading conditions to deteriorate to July 2023, with many wholesale customers seeking out support from businesses and government.
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