Bestway tobacco

The report found spend per trip is up but retailers are making fewer trips

Retailers are spending 40% more per cash & carry visit than they were a year ago, according to new research.

The findings from the Him Wholesale report will provide reassurance to cash & carry operators who have witnessed a concerted shift towards delivered wholesale in recent years.

The average spend per cash & carry visit by retailers jumped to £1,205 compared to just £858 last year. Foodservice customers increased their average cash & carry spend by 5.6% from £196 to £207.

Him conducted the research via more than 2,000 interviews in cash & carry depots and telephone interviews with delivered wholesale customers.

It attributed the sharp increase in spending to retailers planning their shopping better in order to make fewer trips.

This year 26% of retailers said the reason for being at the cash & carry was for a full shop, compared to 17% who were on that mission a year ago.

The percentage of retailers carrying out a planned top-up remained steady at 60%. Those on a distressed top-up mission fell from 18% to 10% last year.

In terms of delivered, the average retailer spend per order has grown 7.3% to £3,170. However, the average foodservice delivered order has fallen from £643 to £621.

“A lot of attention is focused on the growth of delivered wholesale and the changing behaviours of retailers and foodservice operators. However our latest research paints an increasingly positive ­picture for the C&C ­channel,” said Him & MCA insights manager Blonnie Walsh.

“Retailer and foodservice operator spend is considerably higher through delivered wholesale, but the gap has closed year on year, highlighting the huge ­opportunity for ­wholesalers to drive incremental sales and footfall to their depots. The opportunity is particularly high for those wholesalers that offer both delivered and C&C as a route to market.””