Growth predicted for wholesale sector

SALES for UK grocery wholesalers rose 0.3% in 2015 to £30 bn, in spite of continued price deflation in retail, according to IGD.

The research and training charity forecasts the channel will grow by a further 1.3% over the next five years, driven primarily by the development of new clients in the foodservice market.
IGD’s Chief Economist James Walton said: “Now is the time for wholesalers and their partners to take the initiative and develop new growth opportunities. We have noted a decline of symbol stores this year (by 0.7%), but this is rooted in short-term structural change and, once passed, we should see growth reassert itself.
“We are also seeing wholesalers across the board work much more closely with suppliers and retailers, engaging directly with each other and working towards the same goals which, in turn, is making wholesale a much more effective channel.”