Wholesale sees subdued growth in 2020, report shows

Lumina Intelligence’s UK Wholesale Market Report 2020 shows that retail wholesalers faced record levels of demand in 2020, resulting in strong growth, but the impact of restrictions on the hospitality sector had a catastrophic impact on foodservice wholesalers, who have recorded huge turnover declines in the year.

The report also highlights several ways in which the industry has evolved due to the pandemic, such as the reliance on wholesale delivery has been accelerated, several foodservice wholesalers have diversified their operations and explored direct to consumer, and hybrid wholesalers – such as Co-op and Morrisons – have grown their share of the wholesale sector from 6.5% in 2018 to 9.2% in 2020.

Blonnie Walsh, head of Insight at Lumina Intelligence, said: “The wholesale industry has very much been on the front line throughout the pandemic. Retail wholesalers have worked tirelessly to keep stores stocked enabling retailers to support local communities. Foodservice wholesalers have had significant forecasting challenges, as the government imposed strict guidelines on hospitality businesses at short notice, but we’ve seen some innovative responses to this with the development of direct-to-consumer solutions.

“As we enter 2021, the measures the government intend to impose until a vaccine has been widely distributed remain unclear. The UK wholesale industry needs clarity to ensure it is as prepared as it can be to support grocery retailers and hospitality operators, rather than continuing to second guess what will happen next.”