Our Forecast for 2015

It’s been an interesting year for wholesale and foodservice sector in 2014 with a strong performance and little of the drama that has forsaken the supermarket industry this year.

The year has been one of transition from the traditional cash and carry model to one being dominated by internet and click and collect sales. We see this trend continuing into the next 5 years with steady growth year-on-year.

With internet sales having reached over £1bn this year with big contributions from both Booker and Bestway, the convenience of ordering online is becoming a stable feature for customers. This still only represents 4% of the overall market, and so there is still room for much further growth to be seen in internet sales sector. We forecast the market grow to 10% within the next 10 years.

Mobile apps have also started to emerge with a new app created by Bestway as one of the first apps in this sector. Time will tell as to how popular mobile ordering will become, but we forecast that it will continue to grow as smart phones become a mainstay of the ordering market.

With all this online presence continuing to grow, data will become increasing more important with savvy wholesalers making decisions based on the data that they have in real-time to target new and existing customers with special offers etc. We see the emergence of data as the next big change in wholesale and the wholesalers who can adapt the quickest in the next 5 years, will enjoy the biggest growth.

We also see the market becoming more and more competitive as the discounters enter the convenience store market. With lower prices and a different range of brands, market share will be lost to the discounters which will have an added affect on wholesalers too.

Overall, we see opportunity in 2015 for wholesalers to adapt further to technology through online websites, mobile ordering and employing big data techniques to engage customers and refine their price strategies going forward. Those that can adapt the quickest to changes in the market will have a competitive advantage in the coming years.

We wish you all a Happy New Year and prosperous 2015!

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