As the wholesale side gears up for 2025, the collective commitment to innovation, sustainability, and support for convenience retailer is resonating across the sector, reports Asian Trader.
Tackling rising cost pressures, labor shortages, and shifting consumer demands, UK's leading wholesalers are doubling down on creative solutions to ensure their retail partners remain competitive.
At Booker, innovation seems to be the buzzword. From beer caves—temperature-controlled storage solutions for beverages—to refresh zones, the wholesaler is redefining in-store convenience.
“We’re always looking for new ways to innovate and advance the sector, alongside listening to our retailers’ needs.
"At the moment, we’re working on concepts including our beer and soft drinks caves - which are specially designed storage spaces to keep beverages at a consistently cool temperature.
"This proposition is a fantastic way for retailers to ensure drinks are stored properly, preserving freshness and taste for consumers. We also have our refresh zones – designated areas of a store where various drinks machines are situated, improving the overall shopping experience,” a Booker spokesperson shared with Asian Trader.
While Booker’s focus seems to be on beer caves and "refresh zones", wholesaler Parfetts is committed to further expanding its symbol footprint this year, with the addition of new forecourt format Shop & Go. The employee-owned wholesaler is also aiming to increase the reach of its free delivery service.
As shared by Guy Swindell, joint managing director of Parfetts, “The last quarter of 2024 saw reports of supermarkets taking a greater share due to increased discounting, which creates a challenge to convenience.
"Despite these pressures, we’ve seen disciplined stores with proactive retailers being able to maintain growth, and it is vital that we work with those customers to ensure this carries on.
“Stores must be able to offer value while maintaining margin. We have increased the frequency and scale of our promotional programme to help retailers maximize margin.
Guy Swindell
“There has also been significant investment in our own-label range, which now has over 200 lines, and is designed to provide customers with great value and retailers with industry-leading margins,” Swindell told Asian Trader.
Meanwhile, both Bestway and Nisa have already kick started 2025 by removing fuel levies on deliveries. Bestway has also pledged over £2.5 million to cut prices on more than 11,000 branded products.
Bestway’s move is designed to help the retailers drive footfall and customer loyalty by focusing on best-selling products, ensuring that the prices are competitive against the large multiple operators, and will continue to encourage shoppers to buy locally.
Nisa, meanwhile, is also doubling down on its “Mega Deals” campaign, a move aimed at ensuring its retailers remain competitive.
Emerging as a trailblazer in 2025, Sandea Wholesale has renewed focus on sustainability and innovation.
As pointed out by Sandea Wholesale Chief Operating Officer Priya Virdi, convenience stores will increasingly embrace omnichannel strategies this year, blending online ordering, delivery, and in-store shopping for tech-savvy UK consumers.
Health-conscious trends are also reshaping the convenience sector, with rising demand for fresh, plant-based, and locally sourced products, Virdi told Asian Trader.
"Ready-to-eat meals and functional foods are becoming staples in the UK convenience sector, and Sandea is at the forefront of supplying these trends," she said.
The wholesaler’s initiatives also include eco-friendly packaging solutions, waste reduction programs, and carbon emission reductions, further bolstered by tailored pricing, robust loyalty programs, and exclusive supplier partnerships.
The wholesaler is also committed to exploring underserved regional markets and securing exclusive supplier partnerships this year.
For JW Filshill, Scotland’s oldest wholesaler that is celebrating its 150th anniversary, 2025 will be marked with initiatives that go beyond business. The wholesaler aims to raise £150,000 for charities and train 150 KeyStore retailers as mental health ambassadors.
Filshill is also ramping up investments in corporate technology, leveraging AI to enhance operational efficiency and adopting innovative solutions to boost overall productivity.
Challenges Ahead
Cost pressures, supply chain uncertainties, and labor shortages remain significant hurdles for the sector as the year begins.
As pointed out by Swindell, the cost of living crisis and increased business costs due to factors such as the rise in the minimum wage and N.I. will put pressure on margins for everyone.
"That has translated to greater competition in the wholesale sector, and it’s clear that 2025 will continue to be tough for everyone."
"In this environment, retailers need partners that support them and enable them to be flexible and proactive.
"That’s why Parfetts has redoubled its efforts to protect retailer margins with a busy promotional schedule and a growing own-label range that has surpassed 200 lines and investment into its free delivery service.
“Our retailers will also have greater flexibility with the launch of the Shop & Go, a new symbol format for forecourts and transient sites, to accompany Go Local, Go Local Extra, and the off-licence focused, The Local, " Swindell tells Asian Trader.
Acknowledging the legislative impacts of the latest budget, Booker is providing multifaceted support through merchandise assistance, planograms, and sustainability guidance.
Understanding that there is increasing pressure for businesses to become more sustainable, Booker is recommending retailers to start using paper bags rather and is asking local suppliers to decrease food miles, adds the spokesperson, stating that Booker itself is also aiming to make its brands sustainable as well as competitive.
Booker points out at "staff retention" as one of the areas where retailers are struggling in.
"To combat the impacts of this, Booker offers training and development opportunities to prepare store colleagues for a future in storekeeping," stated the spokesperson.
"Booker strives to listen to as many customers as possible and use their feedback to make our brands not only sustainable in this exciting and competitive market, but also make them a real destination for consumers."
On the other hand, Sandea Wholesale identifies “supply chain uncertainties" and “labour shortages” as playing additional hurdles in the wider grocery and FMCG sector this year.
The wholesaler plans to combat the former by diversifying suppliers and utilising predictive analytics, thus ensuring reliability even in uncertain times.
Undeterred by challenges, Sandea Wholesale is already ready with an ambitious 2025 roadmap that includes "tailored pricing, robust loyalty programs, and value-added services".
The wholesaler this year will focus more on launching thousands of new SKUs, investing in advanced technologies to enhance operational efficiency and supporting local UK initiatives through sponsorships and partnerships.
Sandea Wholesale’s 2025 roadmap also includes “promoting inclusivity with employee engagement activities, including festive and cultural celebrations”.
"Sandea Wholesale Ltd.’s journey in 2025 reflects its dedication to innovation, resilience, and partnerships. As the grocery and wholesale sectors evolve, Sandea is prepared to lead with purpose.
"With a focus on sustainability, digital transformation, and community impact, Sandea Wholesale is poised to make 2025 a landmark year—redefining success in the UK wholesale industry and enriching the ecosystem it proudly serves," Virdi said.
Looking at 2025
The last quarter of 2024 saw reports of supermarkets taking a greater share due to increased discounting, posing a greater challenge for convenience. It’s clear that 2025 will continue to be tough for everyone.
Parfetts is calling on the government to listen to business, stating that loading companies with additional costs will only make things harder and collaboration is required between policymakers, retailers, and wholesalers to support the success of the sector.
Despite the pressures, disciplined stores with proactive retailers are being able to maintain growth, and it is vital that the wholesale works proactively with those customers to ensure this carries on.
“For Parfetts and Go Local, 2025 will see the expansion of the Symbol model, with the addition of Shop & Go, more investment into digital marketing channels for our customers, and we will offer more areas our free delivery service as we expand our symbol footprint.
"An aggressive marketplace in 2025 will require greater proactivity from convenience stores to compete, and Parfetts has increased resources into the retail development team to further our help retailers,” Swindell said.
Booker meanwhile is confident of its own brands, Jack’s and Euro Shopper, for providing independent retailers with value-driven options.
"Booker remains committed to supporting independent retailers throughout 2025 - retailers who continue to work incredibly hard in driving the convenience sector forward, despite challenges that the wider industry faces.
"Product value, promotions and our Booker own brands - Jack’s and Euro Shopper - will remain key drivers for retailers. With more than 800 own brand products across Euro Shopper and Jack’s, retailers can give shoppers a breadth of variety alongside offering everyday low value.
“We are proud to serve retailers right across the UK and will continue to listen and learn from them to further improve Choice, Price and Service across Booker,” said the Booker spokesperson.
Despite the challenges, the sector’s forward-thinking approach and renewed commitment to support must be encouraging and reassuring for their retail partners. Lets see how things unfold in the coming months.
Post office Horizon scandal campaigners have slammed the government for extending a post-Brexit contract worth £67 million with the controversial firm Fujitsu.
A recent report by The Independent stated that His Majesty’s Revenue and Customs (HMRC) has granted a year-long extension to Fujitsu, which developed the faulty software leading to the wrongful prosecution of hundreds of subpostmasters for theft and false accounting, to run its Trader Support Service (TSS),
Fujitsu ruled itself out of bidding for government contracts in January last year due to its role in the Horizon Post Office scandal.
But the extension, worth £66.8m and detailed in documents seen by the media house, was approved because it is not a new contract.
Former sub post-mistress Seem Misra OBE has criticised the government over this move.
She stated on X, "We (SPMR) couldn't work due to wrongful convictions, yet Fujitsu—whose system destroyed lives—is expanding. What have they offered this time to stay quiet? Where's the justice?"
— (@)
Lord Arbuthnot, who campaigned for wrongly convicted sub postmasters, said it was “a worrying decision by the government on several levels”.
“First, it sends Fujitsu and other companies the message that the country doesn’t care about the unethical behaviour shown by Fujitsu in the Post Office scandal.
“Second, it weakens the government’s bargaining power in requiring Fujitsu to bear a substantial portion of the cost of that scandal.
“Third, it suggests that the government is uncomfortably dependent on Fujitsu. And fourth, it ignores the fact that Fujitsu’s capability on this contract may be no better than their Post Office capability," he told The Independent.
“Why didn’t they start work earlier on finding someone else?”
Meanwhile, HMRC said the extension was needed in order to “ensure a period of stabilisation” while new trading arrangements come into place under the Windsor Framework.
It has promised to run a procurement process in the coming months to replace Fujitsu in delivering the service.
Fujitsu in the past has won nearly £6.8bn in nearly 200 contracts from the public sector, including 11 for HMRC to the value of over £1bn, and 12 contracts with the Ministry of Defence for £582m.
The Labour government is getting rid of a "shoplifters’ charter" to take a grip on rising retail crime left behind by the Conservative party, prime minister Keir Starmer stated on Wednesday (5) in the Commons Chamber.
Starmer was answering a question raised by Labour MP Claire Hughes when he acknowledged that shoplifting is no more a "low level" crime.
Citing an example of seaside town Llandudno where businesses are struggling with a rise in shoplifting, Hughes raised the concern in the Commons Chamber, adding that thieves are now committing robbery in full view of staff because they have no fear of consequences.
She stated, "The recent funding boost for neighbourhood policing is very welcome, but will the Prime Minister please tell my constituents what more the Government are doing to tackle retail crime and deter repeat offenders?"
Starmer agreed, saying shoplifting is not a victimless crime.
He said, "For far too long, crimes such as shoplifting have been written off as 'low level'.
"That is wrong; such crimes are devastating. The Conservative party left us with rising crime and effectively told the police to ignore shoplifting of under £200-worth of goods.
"We have got rid of that shoplifters’ charter, and we are working hard to ensure that we take a grip where they lost control."
Nearly half a million shoplifting offences were recorded by police in England and Wales in a year, the highest 12-month total on record, according to the data released by Office for National Statistics (ONS) last week.
.A total of 492,914 offences were logged by forces in the year to September 2024, up 23 per cent from 402,220 in the previous 12 months. The figure is the highest since current records began in the year to March 2003.
Industry body the British Retail Consortium's (BRC) annual crime survey also shows similar trend.
BRC survey shows that theft and violence against retail workers in Britain soared to record levels last year and are "out of control", driven partly by criminal gangs.
The survey found more than 20 million incidents of theft were committed in the year to Aug 31 2024, which equates to 55,000 a day, costing retailers a total £2.2 billion. There were 16 million incidents in the previous year.
Incidents of violence and abuse in 2023/24 climbed to over 2,000 per day, up from 1,300 the year before. This is more than three times what it was in 2020, when there were just 455 incidents a day.
Incidents included racial or sexual abuse, physical assault or threats with weapons. There were 70 incidents per day which involved a weapon, more than double the previous year, shows BRC survey.
Keep ReadingShow less
FWD's new report highlights the crucial role wholesalers play in the supply chain.
Food and drink wholesale distribution sector generated £33.6 billion of turnover in 2023-24 with £17.5 billion coming from sales to mainly independent retailers, reveals an industry report released today (5).
The report was launched in the Houses of Parliament in the presence of Daniel Zeichner, Minster for Food Security and Rural Affairs.
Zeichner said, " “This report highlights just how important the wholesale sector is. These are really significant numbers. Economic growth is absolutely central to wholesale businesses, as is breaking down the barriers to opportunity.
"Our pledge to you is to work with you as we begin to develop our policies. Our stated goal is to try and help change the way the supply chain operates to make sure there is a fair distribution of resources through the supply chain, and I really look forward to working with the wholesale sector on this.”
Retail businesses account for 52 per cent of food and drink wholesalers' revenue, while foodservice and caterers account for 29 per cent and 10 per cent respectively.
Delivery remains the most common route to customers with 58 per cent of sales value fulfilled through deliveries. 40 per cent of sales value fulfilled through cash and carry and 1.3 per cent of sales are made through click and collect.
In total, wholesalers spent £27 billion on stock to be sold to retailers and foodservice providers. The largest product categories were tobacco, vaping and alcohol, followed by soft drinks, frozen food, confectionery, crisps, snacks and biscuits.
The report states that food and drink wholesale distributors directly contributed £3.5bn to national output in terms of gross value, employing 77,000 people. The overall value chain that it supports employs a total of 1.5 million people, about 4.8 per cent of the UK workforce.
The sector faces a series of challenges going ahead, highlighted the report through a recent survey of FWD's members. Some of the main concerns among the wholesalers are inflation, increase in transportation costs, labour and skill shortage and regulations.
Wholesale warehouse
iStock image
AI and automation hold significant potential to positively impact the sector like in identifying the wallet share gaps and predicting reorder needs . However, the report states that companies are yet not fully embracing these technologies, saying "no distributor has integrated AI into its operation to a great extent".
60 per cent of the respondents indicated they have incorporated AI into supply chain management.
FWD reiterates in the report to reach net zero Scope 1, 2 and 3 emissions by 2040, which will require 90 per cent reduction in emissions and coordinated actions across value chains.
Furthermore, the sector is facing labour shortage stemming from ageing workforce, Brexit, images issues and competition.
"The sector's image poses a challenge in attracting new recruits as over 90 per cent of people never consider a career in logistics", states the report, mentioning terms like "demanding" and "boring" associated with warehouse work.
Speaking at the launch, FWD head of external affairs Lyndsey Cambridge said, “Wholesalers are the lifeblood of the nation – from supporting high street restaurants to supplying hospitals, schools and local retailers with food, the FWD membership is delivering for people across the length and breadth of the UK.
"This groundbreaking research provides a comprehensive economic impact of food and drink wholesale, demonstrating the value and importance of the sector in improving consumer choice through its support for retailers and caterers.
“Given its reach and contribution, our sector has and will play a pivotal role in driving economic growth in the coming years. We look forward to partnering with policymakers across the UK to grow our industry further while meeting the everyday challenges our members face in areas such as increased transport costs and labour shortages.”
Cost of living is still consumers’ number one concern, shows recent data, highlighting how shoppers are turning to scratch cooking to both save money and have a healthier diet.
According to new data released today byNielsenIQ (NIQ), total till sales grew at UK supermarkets (+5.3 per cent) in the last four weeks ending 27th January 2025, up from +3.6 per cent recorded in December.
With a better outlook on food inflation (+1.6 per cent) compared to last year (+6.4 per cent), there was good unit growth of +0.9 per cent at the Grocery Multiples. However, growth slowed after the new year.
January is typically a time of year for a healthy reset for consumers, and NIQ data shows 12 per cent of British households purchased meat-free substitutes in the last four weeks. Whilst this is a small drop from 14 per cent last year, shoppers have not cut back on healthy diets with double-digit growth in freshly prepared fruit (+16 per cent) and fresh veg accompaniments which grew by +9 per cent.
Meat, fish and poultry was the fastest growing super category (+9.1per cent) as shoppers sought to cook protein-rich meals as part of New Year diets. This was followed by pet care (+8.3 per cent) and dairy products (+6.8 per cent).
In addition, NIQ data shows that half of all UK households now say they cook from scratch every day or most days, with around 16 per cent doing so more due to the rising cost of living.
The impact of this shift in behaviour marks a spike in demand for easy hacks to speed up or elevate the dining experience, with a boost in sales for fresh gravy (+28 per cent), fresh dough and pastry (+18 per cent), fresh dips (+15 per cent) and fresh cream and custard (+14 per cent).
In terms of retailer performance, Ocado led with a sales growth of +15.6 per cent compared with the same period last year.
This was followed by Marks & Spencer (+9.7 per cent) helped by its bigger store formats motivating shoppers to add more items to their baskets as well as its dine-at-home deals. There was also continued growth at the discounters Lidl (+7.8 per cent) and Aldi (+3.8 per cent) with both retailers gaining new shoppers and more store visits.
Mike Watkins, Head of Retailer and Business Insight at NIQ said, “The lift to grocery sales in the last four weeks was helped by the timing of the New Year, with a proportion of sales coming from the new year festivities which was week ending 4th January (+10.0 per cent).
"However, after this, weekly growth in January was slightly lower. Whilst overall Total Till sales growth was higher than December, the underlying trend is closer to +3 per cent which is the average growth in the most recent three weeks.”
Watkins adds, “NIQ Homescan data shows that the cost of living is still firmly consumers’ number one concern at the start of 2025. Shoppers are looking to save money and eat healthier leading to a growing trend in scratch cooking, which is one of the key behaviours driving the strong unit growth (+2 per cent) and value growth (+6.8 per cent) in fresh food categories in the last four weeks.”
Take-home sales at the grocers rose by 4.3 per cent over the four weeks to 26 January compared with one year ago, according to the latest data from Kantar, which also shows a consistent rise on spending on promotions and fresh produce. Share of symbols and independents however continued on a decline.
January spelled relief for shoppers as grocery price inflation slowed to 3.3 per cent over the four weeks.
With household budgets typically stretched at this time of year, retailers played their part in easing the pressure on purse strings.
Fraser McKevitt, head of retail and consumer insight at Kantar, comments, “Supermarkets were dishing out the discounts this New Year, and consumers responded. Spending on promotions rose year-on-year by £274 million, accounting for 27.2 per cent of sales – the highest level in January since 2021.
“People also turned to non-branded products to help keep costs down, with own label as a proportion of sales hitting a record high of 52.3% in January. Spending on supermarkets’ own lines was up 5.4%, helped by consumers buying premium own label products in the couple of days leading up to New Year’s Eve."
Typically, shoppers have an eye on wellness, not just their wallets, at the start of the year – and 2025 was no exception. More than 10 per cent of the average consumer’s January grocery bill was spent on fresh fruit, vegetables and salad, totalling £1.2 billion – £193 million more than in December.
Nathan Ward, business unit director for usage and out-of-home at Kantar, adds, “Rolling into the new year, health tends to play a bigger role in our grocery choices. Over a quarter of take-home food and drink in January is chosen with health at least partially in mind, as shoppers tell us they want to eat less processed food and feel the benefit of fibre and vitamins.”
Protein products pulled their weight at the tills too as demand for bars, bites and drinks boosted spend on sports nutrition products. Sales for this category at supermarkets were 47% higher than last year, with over two million households buying these items during the month.
Sales of low and no alcohol drinks were 7 per cent higher than last January, and 6.7 per cent of households bought at least one of these alternatives.
Fraser McKevitt comments: “It’s no surprise to see the low and no alcohol trend make its mark in January, but given some of the generational splits we have seen in grocery, it’s interesting that older shoppers are just as likely to take these products home as younger ones. Not everyone signed up for dry January though, with 49% of people buying an alcoholic drink this month – but this is a pretty big drop from December’s 76%.”
Lidl’s sales rose 7.4% over the 12 weeks to 26 January, making it three continual years of growth for the discounter, whose share hit 7.2%. Aldi accelerated for the third consecutive month with sales up 4.2% and its market share increasing to 10.2%.
Ocado was the fastest-growing grocer for the ninth consecutive month. Spending at the online retailer grew by 11.3% meaning it now holds 1.9% of the market. Joint owner of Ocado Retail, M&S has also seen a strong 12 week period of growth with grocery sales increasing by 10.5%* in its brick-and-mortar stores.
Britain’s largest grocer Tesco gained the most share, its 28.5 per cent hold of the market is 0.7 per cent higher than this time last year, and it also saw its fastest rise in sales since April 2024 at 5.6 per cent. Sainsbury’s outpaced the market at 4.2 per cent sales growth, increasing its share from 15.7 to 15.9 per cent. Morrisons has 8.6% of the market while Asda’s portion is 12.6 per cent.
Convenience retailer Co-op returned to growth, with sales rising by 0.8 per cent giving it a 5.2 per cent share of the market while symbols and independents again saw dip of 5.8 per cent.