Reasons to be cheerful?
New wholesale report from Lumina Intelligence highlights the challenges for the sector, but it’s not all doom and gloom
A new report has revealed that the majority of business leaders across the grocery retail (54%) and eating out market (58%) are expecting trading conditions to deteriorate to July 2023 but highlighted reasons to be optimistic too.
Lumina Intelligence’s Wholesale Market Report 2022 has revealed that the cost-of-living squeeze on household budgets has been highlighted by business leaders as the most important long-term consumer trend impacting eating out and grocery this year. It referenced that many wholesale customers will be seeking support from businesses and government as consumer discretionary spend will be hard fought for across the next six months.
The report, which is compiled from Lumina Intelligence’s Wholesale Market Report Survey 2022, Market Sizing and Operator Data Index and the Top of Mind Business Leaders Survey, revealed how wholesalers are addressing consumer’s reduced spend with initiatives to support customers, such as Brakes’ Simply Steak range, aimed at helping foodservice operators retain beef across menus.
Despite the hit on overall confidence, there are indications of recovery and so far, two-thirds of foodservice operators have not postponed business planning and investment. The report shows that Brakes and Bidfood are set to see growth in excess of +20% in 2022, contributing to an overall combined turnover growth of +9.7% among the leading nine wholesalers.
There is optimism among surveyed professionals in the grocery market too, with belief that there will be opportunities for convenience stores going forward, because of the current economic outlook.cost of living crisis Foodservice Lumina Intelligence report retail trends wholesale