Cash and Carry: What prospects for growth?

With its heavy dependence on independent food retailers, the cash and carry sector has seen little overall growth in recent years. A number of operators have experienced severe pressure on net margins, and rationalisation and reorganisation have speeded up, especially with loosely organised groupings of wholesalers. What prospects for growth does the CandC sector show? This article looks at current problems and how the major companies are formulating their strategies for the future. Will this large sector — still with sales of over £3,000m, continue to suffer at the hands of the multiple food retailer? Are there enough new markets in terms of products or customers? And will we see an increasing dilution of genuine wholesaling to bulk buying by consumers?