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WHOLESALE

4 OCTOBER 2024 ASIAN TRADER 9

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n Scotland, wholesalers seem to be

having a good time. The numbers don’t

lie – wholesalers north of the border are

outpacing their counterparts in England

and Wales. This nugget of optimism, revealed

by market analysts TWC and HDI, of ers a

glimmer of hope for an industry that’s been

hit with more than its fair share of challenges.

But before we break out the party poppers, it’s

worth digging deeper.

At a recent seminar, data experts served up

a comparison of the UK’s wholesale landscape,

and it turns out that Scotland is shining. Ac-

cording to Scottish Wholesale Association

(SWA) chief Colin Smith, conﬁ dence is high,

and the numbers are encouraging.

The success of the Scottish wholesale sector

reﬂ ects its adaptability in a rapidly changing

marketplace. The truth is wholesalers every-

where are being squeezed. Whether caused

by inﬂ ation, rising operational costs, or supply

chain fragility, they’re grappling with pressures

that even the most seasoned industry veterans

couldn’t have predicted a few years ago.

Take JW Filshill, for example,

a ﬁ fth-generation business clos-

ing in on its 150th anniversary.

Celebrating strong results –

turnover up to £215 million and

operating proﬁ t hitting £4.2m

– is no small feat. But it’s not all

down to luck or legacy. The com-

pany that supplies KeyStore con-

venience stores and independent

retailers across Scotland and the

north of England, recorded gross

proﬁ t of £22.3m, up from £19.4m, while net

assets increased to £21.6 compared to £18.9m

the previous year.

Filshill’s success, according to its CFO Keith

Geddes, is built on two things – strategic fore-

sight and embracing new technologies. Moving

into a sleek, energy-ef cient distribution hub

near Glasgow has also been a game-changer,

not just for proﬁ ts but for their sustainability

agenda.

Filshill’s focus on machine learning and

AI might sound futuristic, but it’s the kind

of future-prooﬁ ng more businesses need if

they want to survive the cut-throat wholesale

market.

The wholesaler also emphasised that it

will continue to develop its strategy around

reducing its carbon footprint, identifying areas

where it can positively inﬂ uence a reduction in

Pooja Shrivastava ﬁ nds that the wholesale

sector continues to be a beacon of resilience amid

industry pressure and economic challenges

its carbon impact and work towards a net-zero

emissions position.

“The move to our new Westway site enabled

a step-change in our carbon footprint through

the modern design and build quality – in par-

ticular insulation, improved natural lighting,

energy-ef cient artiﬁ cial lighting, and reduced

heating requirements along with signiﬁ cant

solar power generation,” Geddes added.

It was also declared along with the results

that Filshill’s engagement with its workforce

on physical and mental health, and wellbeing,

remained a key aspect and will continue to

be, with ﬁ nancial planning and healthy eating

featuring in regular support sessions.

However, the group pointed to ongoing in-

ﬂ ation and increases in the cost of living, with

increases in the cost of fuel and food and drink

as causing “uncertainty for the group, our staf ,

our customers and suppliers”.

Parfetts, meanwhile, an employee-owned

business, recently handed out a 12 per cent

proﬁ t share bonus to its staf after a record year.

“We know that their success is our success,”

said Guy Swindell, joint manag-

ing director of Parfetts, adding,

“That’s why we continue invest-

ing in our people and service.”

Parfetts is expanding con-

ﬁ dently, opening new depots,

investing in digital tools, and

continuing to push into new

territories. This is a business with

its eyes ﬁ rmly on the horizon,

even as it takes care of the people

keeping the ship aﬂ oat.

Parfetts depots function as cash-and-

carry centres from 6:30 am to 6:30 pm while

handling delivery and click-and-collect orders

overnight. The wholesaler is also expanding

its own-label range, which will reach 200 lines

by the end of the year. The Go Local own-label

range is designed to of er notable margins on

the best-selling lines.

Buying groups

However, things are not all warm and cozy

yet. Cost pressures are still biting. Wages

aren’t expected to rise again soon and energy

bills aren’t getting any kinder.

Adding to the pile is the rising concern of

cyber security.

To tackle the latter, Confex, a buying

group that serves 241 members across the

UK, is rolling out computer security services

as a safeguard against the increasing threat

of cyber attacks. It’s a smart move in an era

where data breaches and ransomware attacks

are hitting companies where it hurts – right

in the bottom line.

Meanwhile, Sugro UK is strengthening

its data capabilities. The buying and market-

ing group has joined hands with Lumina

Intelligence, a renowned provider of market

data and insights in the foodservice and

convenience retail sectors. Through this

partnership, Sugro Group will gain access

to exclusive reports and strategic insights,

detailing the latest developments in the

sectors, including key trends, consumer

behaviours and opportunities for growth

that are essential to staying competitive in

the fast-evolving convenience and food-to-

go markets.

Recently Sugro UK conducted its Annual

Conference and Networking Event in which

it honoured Youngs Wholesale Ltd for its

140th anniversary. The event also celebrated

the 10th anniversary of North West Whole-

sale Ltd, 20th anniversary of C & S Distribu-

tions and 25th anniversary of Becsco Ltd.

Speaking of events, the UK’s largest

buying group, Unitas, recently wrapped

up its 2024 conference. The four-day event

saw more than 700 individual one-to-one

member and supplier meetings, alongside

the plenary business sessions. Topics such as

consumer attitudes towards ultra-processed

foods, digital marketing, and the role of

wholesale in tackling the UK obesity crisis

were discussed.

Overall, while Scotland’s wholesale sec-

tor is showing signs of resilience, there’s no

room for complacency. If the last few years

have taught us anything, it’s that nothing in

the wholesale or retail landscape is predict-

able anymore.

All is well in wholesale

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