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- What is the role of wholesaling?
- What types of wholesalers are there?
- How much is the grocery wholesale market worth?
- What is the split between the wholesaler types?
- Who are the main operators?
What is the role of wholesaling?
The role of wholesaling is to supply goods to trade and business customers for whom dealing directly with suppliers is not feasible and/or practical. By buying in bulk and selling on by case loads wholesalers provide a supply chain solution to a wide range of business customers in the food and grocery sector, but especially:
- Independent and convenience retailers
- All types of operators in the eating out market: restaurants, caterers etc
As well as supplying product many wholesalers provide a range of business support services for customers, most notably distribution/delivery services. Many wholesalers specialise in providing delivery as part of their offer, enabling them to fulfil the function of logistics provider to customers.
What types of wholesalers are there?
Grocery and foodservice wholesalers can be categorised into three different types, distinguished by the key customer groups they serve and the platform from which they serve them:
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- Cash & carry wholesalers
Supply a wide range of food and grocery categories with the majority of sales made through self-service depots. Their primary customers are independent retailers and caterers, but may also have significant secondary customer bases in catering and general business users.
- Delivered grocery wholesalers
These operators supply product solely by delivery service, to customers in the retail sector. These customers are primarily independent and convenience retailers which may also include multi-site operators.
- Delivered foodservice wholesalers
These delivered operators service a wide range of businesses in the eating out market including cafes, restaurants, fast food establishments and schools and hospitals. As well as ‘broadline’ wholesalers the segment also includes many product specialists, with a limited category focus in areas such as meat and fresh produce. |
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How much is the grocery wholesale market worth?
IGD estimates that sales through the grocery and foodservice wholesaling sector in 2011 reached £26.6bn, representing an increase of 2.9% on 2010.
Grocery Wholesaling Market Size and Growth 2007-2011
Source: IGD Research 2011
What is the split between the wholesaler types?
In 2011 cash & carry accounts for 42% of the market was the cash & carry (£11.3bn), delivered grocery represents 34% (£8.8bn) and delivered foodservice 24% (£6.4bn).
Grocery & Foodservice Wholesaling: Sales by Operator Type 2007-2011
Source: IGD Research 2011
Who are the main operators?
The key cash and carry operators are:
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Operator |
Depot numbers |
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Booker |
173 |
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Bestway/Batleys |
61 |
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Makro |
30 |
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Costco |
22 |
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Blakemore |
8 |
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Parfetts |
6 |
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Dhamecha |
6 |
Source: IGD Research 2011
The key delivered grocery wholesale operators are:
- P & H McLane
- Musgrave Retail Partners GB & Northern Ireland
The SPAR wholesalers: CJ Lang & Son, James Hall & Co, AF Blakemore & Son/Capper Co, Appleby Westward, John Henderson
The key delivered foodservice wholesalers are:
- Brakes
- 3663
- DBC Foodservice
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