The relationship between retailers and cash & carries remains as close as ever with wholesalers ensuring availabilty of the right products while both sides joining forces to combat the dangers of illicit trading.
Further consolidation and the expansion of the independent trade look set to drive the wholesale and cash & carry market in Scotland this year. After a quiet year, 2013 ended with rumours that Bestway was making a move for Glasgow-based firm Sher Bros. The expansion of United Wholesale (Scotland)’s Maxwell Road branch in Glasgow and the firm’s opening of a depot in Edinburgh show the scale of Managing Director Asim Sarwar’s ambition.
Now serving as President of the SWA, Sarwar is also a key driver of the wholesale industry’s fight against the illicit trade (see p34 for more on this). With tobacco and alcohol both suffering, 2014 is set to see an expansion of the battle to drive these criminals from our industry, While much of wholesale business in Scotland is delivered, Batleys Scotland operates seven Cash & Carry depots in Scotland and although it is widely reported that more and more retailers are joining fascia groups or relying on delivered wholesale, that is not reflected in business at Batleys where footfall and sales continue to grow at 6% year on year.
The company says that all depots are showing impressive growth from Aberdeen (41%) to Glasgow (10%). The group has listened to customers, adapted and is now offering better services as a result. As Bestway says, modern day wholesaling is about much more than shifting boxes; it means wholesalers have to understand retailer issues and deliver a service and experience that outshines the competition. The company offers a comprehensive product range in Scotland with availability at the top of its list of priorities. A spokesperson says: “For too long there seems to have been a perception that availability is naturally better from delivered operators, however we strive to achieve exceptional availability across the total range. “Our customers also tell us that our pricing is not only extremely competitive but also consistent.
We don’t trade on a high-low platform either; retailers margins do allow for a huge diversification in pricing.” Promotions are also tailored exclusively for Scotland at Bestway’s regional office in Edinburgh and a Scotland specific promotional leaflet is produced every month. This promotional programme extends to its ‘Xtra Local’ retail club which currently has over 200 members across the region. Retailers are provided with a complete promotional programme, across all product categories and, as with the depot promotions, they are tailored specifically for the Scotland. With the sector itself, the rise of own-label products has seen a slight shift in the range that retailers themselves are shopping for. It’s worth noting that according to him!, 53% of retailers and 44% of customers purchase own-label products.
