Wholesaler Dhamecha has predicted tough times ahead for delivered operators and a return to the cash & carry model.

"Retailers are moving away from delivered wholesalers, mainly because they're too expensive," said CEO Pradip Dhamecha.

Delivering in London was a "nightmare", he said, highlighting the cost of complying with the Congestion Charge.

Dhamecha closed the delivered service that ran from its Enfield depot last year and used the three lorries to move stock between his five depots, which are all situated within the M25.

Dhamecha will not deliver any goods in the future and will concentrate on its cash & carry depots.

Profits at the Today's Group's biggest member rose 33% to £8.5m in the year to March 2009, with turnover up 13% to £397m.

Retailers were increasing spend at his depots as more consumers shopped locally, said Dhamecha.