Wholesalers’ 2025 vision for convenience retailers [Exclusive]

As the wholesale side gears up for 2025, the collective commitment to innovation, sustainability, and support for convenience retailer is resonating across the sector, reports Asian Trader.

Tackling rising cost pressures, labor shortages, and shifting consumer demands, UK's leading wholesalers are doubling down on creative solutions to ensure their retail partners remain competitive.

At Booker, innovation seems to be the buzzword. From beer caves—temperature-controlled storage solutions for beverages—to refresh zones, the wholesaler is redefining in-store convenience.

“We’re always looking for new ways to innovate and advance the sector, alongside listening to our retailers’ needs.

"At the moment, we’re working on concepts including our beer and soft drinks caves - which are specially designed storage spaces to keep beverages at a consistently cool temperature.

"This proposition is a fantastic way for retailers to ensure drinks are stored properly, preserving freshness and taste for consumers. We also have our refresh zones – designated areas of a store where various drinks machines are situated, improving the overall shopping experience,” a Booker spokesperson shared with Asian Trader.

While Booker’s focus seems to be on beer caves and "refresh zones", wholesaler Parfetts is committed to further expanding its symbol footprint this year, with the addition of new forecourt format Shop & Go. The employee-owned wholesaler is also aiming to increase the reach of its free delivery service.

As shared by Guy Swindell, joint managing director of Parfetts, “The last quarter of 2024 saw reports of supermarkets taking a greater share due to increased discounting, which creates a challenge to convenience.

"Despite these pressures, we’ve seen disciplined stores with proactive retailers being able to maintain growth, and it is vital that we work with those customers to ensure this carries on.

“Stores must be able to offer value while maintaining margin. We have increased the frequency and scale of our promotional programme to help retailers maximize margin.

Guy Swindell

“There has also been significant investment in our own-label range, which now has over 200 lines, and is designed to provide customers with great value and retailers with industry-leading margins,” Swindell told Asian Trader.

Meanwhile, both Bestway and Nisa have already kick started 2025 by removing fuel levies on deliveries. Bestway has also pledged over £2.5 million to cut prices on more than 11,000 branded products.

Bestway’s move is designed to help the retailers drive footfall and customer loyalty by focusing on best-selling products, ensuring that the prices are competitive against the large multiple operators, and will continue to encourage shoppers to buy locally.

Nisa, meanwhile, is also doubling down on its “Mega Deals” campaign, a move aimed at ensuring its retailers remain competitive.

Emerging as a trailblazer in 2025, Sandea Wholesale has renewed focus on sustainability and innovation.

As pointed out by Sandea Wholesale Chief Operating Officer Priya Virdi, convenience stores will increasingly embrace omnichannel strategies this year, blending online ordering, delivery, and in-store shopping for tech-savvy UK consumers.

Health-conscious trends are also reshaping the convenience sector, with rising demand for fresh, plant-based, and locally sourced products, Virdi told Asian Trader.

"Ready-to-eat meals and functional foods are becoming staples in the UK convenience sector, and Sandea is at the forefront of supplying these trends," she said.

The wholesaler’s initiatives also include eco-friendly packaging solutions, waste reduction programs, and carbon emission reductions, further bolstered by tailored pricing, robust loyalty programs, and exclusive supplier partnerships.

The wholesaler is also committed to exploring underserved regional markets and securing exclusive supplier partnerships this year.

For JW Filshill, Scotland’s oldest wholesaler that is celebrating its 150th anniversary, 2025 will be marked with initiatives that go beyond business. The wholesaler aims to raise £150,000 for charities and train 150 KeyStore retailers as mental health ambassadors.

Filshill is also ramping up investments in corporate technology, leveraging AI to enhance operational efficiency and adopting innovative solutions to boost overall productivity.

Challenges Ahead

Cost pressures, supply chain uncertainties, and labor shortages remain significant hurdles for the sector as the year begins.

As pointed out by Swindell, the cost of living crisis and increased business costs due to factors such as the rise in the minimum wage and N.I. will put pressure on margins for everyone.

"That has translated to greater competition in the wholesale sector, and it’s clear that 2025 will continue to be tough for everyone."

"In this environment, retailers need partners that support them and enable them to be flexible and proactive.

"That’s why Parfetts has redoubled its efforts to protect retailer margins with a busy promotional schedule and a growing own-label range that has surpassed 200 lines and investment into its free delivery service.

“Our retailers will also have greater flexibility with the launch of the Shop & Go, a new symbol format for forecourts and transient sites, to accompany Go Local, Go Local Extra, and the off-licence focused, The Local, " Swindell tells Asian Trader.

Acknowledging the legislative impacts of the latest budget, Booker is providing multifaceted support through merchandise assistance, planograms, and sustainability guidance.

Understanding that there is increasing pressure for businesses to become more sustainable, Booker is recommending retailers to start using paper bags rather and is asking local suppliers to decrease food miles, adds the spokesperson, stating that Booker itself is also aiming to make its brands sustainable as well as competitive.

Booker points out at "staff retention" as one of the areas where retailers are struggling in.

"To combat the impacts of this, Booker offers training and development opportunities to prepare store colleagues for a future in storekeeping," stated the spokesperson.

"Booker strives to listen to as many customers as possible and use their feedback to make our brands not only sustainable in this exciting and competitive market, but also make them a real destination for consumers."

On the other hand, Sandea Wholesale identifies “supply chain uncertainties" and “labour shortages” as playing additional hurdles in the wider grocery and FMCG sector this year.

The wholesaler plans to combat the former by diversifying suppliers and utilising predictive analytics, thus ensuring reliability even in uncertain times.

Virdi stated, "An e-commerce platform provides real-time inventory updates, personalized recommendations, and enhanced customer convenience.

Undeterred by challenges, Sandea Wholesale is already ready with an ambitious 2025 roadmap that includes "tailored pricing, robust loyalty programs, and value-added services".

The wholesaler this year will focus more on launching thousands of new SKUs, investing in advanced technologies to enhance operational efficiency and supporting local UK initiatives through sponsorships and partnerships.

Sandea Wholesale’s 2025 roadmap also includes “promoting inclusivity with employee engagement activities, including festive and cultural celebrations”.

"Sandea Wholesale Ltd.’s journey in 2025 reflects its dedication to innovation, resilience, and partnerships. As the grocery and wholesale sectors evolve, Sandea is prepared to lead with purpose.

"With a focus on sustainability, digital transformation, and community impact, Sandea Wholesale is poised to make 2025 a landmark year—redefining success in the UK wholesale industry and enriching the ecosystem it proudly serves," Virdi said.

Looking at 2025

The last quarter of 2024 saw reports of supermarkets taking a greater share due to increased discounting, posing a greater challenge for convenience. It’s clear that 2025 will continue to be tough for everyone.

Parfetts is calling on the government to listen to business, stating that loading companies with additional costs will only make things harder and collaboration is required between policymakers, retailers, and wholesalers to support the success of the sector.

Despite the pressures, disciplined stores with proactive retailers are being able to maintain growth, and it is vital that the wholesale works proactively with those customers to ensure this carries on.

“For Parfetts and Go Local, 2025 will see the expansion of the Symbol model, with the addition of Shop & Go, more investment into digital marketing channels for our customers, and we will offer more areas our free delivery service as we expand our symbol footprint.

"An aggressive marketplace in 2025 will require greater proactivity from convenience stores to compete, and Parfetts has increased resources into the retail development team to further our help retailers,” Swindell said.

Booker meanwhile is confident of its own brands, Jack’s and Euro Shopper, for providing independent retailers with value-driven options.

"Booker remains committed to supporting independent retailers throughout 2025 - retailers who continue to work incredibly hard in driving the convenience sector forward, despite challenges that the wider industry faces.

"Product value, promotions and our Booker own brands - Jack’s and Euro Shopper - will remain key drivers for retailers. With more than 800 own brand products across Euro Shopper and Jack’s, retailers can give shoppers a breadth of variety alongside offering everyday low value.

“We are proud to serve retailers right across the UK and will continue to listen and learn from them to further improve Choice, Price and Service across Booker,” said the Booker spokesperson.

Despite the challenges, the sector’s forward-thinking approach and renewed commitment to support must be encouraging and reassuring for their retail partners. Lets see how things unfold in the coming months.