FWD column: Now is the time to invest in the sector

Let’s ride the fresh wave of confidence brought about by a new government, says Dawood Pervez, chair of FWD

As the magazine goes to print, we are about to welcome in a new government and it is crystal clear that the nation is ready for change. And for change to happen in a way that is inclusive, we must respect different opinions and understand every perspective. It’s about working together to achieve the right results and sometimes that means compromise and collaboration.

These are qualities that the wholesale industry has long recognised and practises in abundance. Just a few days ago, the industry gathered at the annual FWD conference which, for 2024, was themed ‘Unlock the power of wholesale.’ Our speakers reinforced the opportunity to drive sales and business growth for all parties across the supply chain by working together. The power of collaboration was an important thread.

There is no doubt that over recent years, consumers have lost confidence. Unprecedented economic turmoil (and of course, Covid 19) has seen interest rates increase to the highest level in 15 years alongside a 40-year high for inflation. It has made forecasting ahead exceptionally difficult for wholesalers and every aspect of the supply chain.

LIMITED GROWTH

Back in 2023, the IGD predicted that convenience would outgrow the major multiples until 2028 (with the exception of the discounters). However, the crystal ball has not proven to be entirely accurate, as right now this growth is limited. That could be down to influencing factors such as weather (let’s be honest, it’s been poor since last July) or down to greater planning by consumers around their shopping behaviours as they feel the economic pinch. Certainly, the gulf in pricing between the multiples and c-store formats (especially taking loyalty discounts into account) will not have helped.

Nevertheless, there remains real opportunity in convenience for both wholesalers and suppliers. The data shows that this sector has a proven track record and there is a strong argument for investment. A change of government will bring new energy and consumer confidence will return – it’s just waiting to happen. And, dare I say it, some good weather and a decent summer of sport will also help!

Reinforcing this point, data shared at the conference by Lumina Intelligence highlighted the significant opportunity across food-to-go markets. Growth, fresh innovation and NPD are anticipated over the next few years which will impact positively on the convenience market. As the consumer looks for greater value, this could provide an interesting new phase in collaboration between the retail and catering sides of wholesale. And Unitas Wholesale was quick to highlight that suppliers who collaborate with them on touchpoints and activations understand the business and the right promotions needed in each channel – this level of partnership working reaps big rewards.

DYNAMIC

The conference reinforced that wholesalers remain positive and dynamic in their thinking. It was clear that collaboration with suppliers was at the top of every wholesaler’s agenda whether that is sharing of data (unheard of a decade ago) and evidencing best practice alongside a willingness to discuss challenges and solutions with their peers.

Now is the time to invest to ensure that we ride the fresh wave of confidence that a new government will bring together with the interest rate cuts which are widely anticipated in the months ahead.

Together we are stronger. We can achieve more through collaboration as we look to mutually optimise the opportunity that the coming years present.

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