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Wholesale Industry

The wholesale and retail trade sector is the largest employer in the UK, comprising nearly 18% of the workforce, with 46% of those employed by small or medium-sized businesses. After navigating the challenges of the pandemic, 2023 has marked a period of consolidation and growth through acquisitions.

40%

According to the 2023 Gartner global Survey:
40% of businesses will take steps to improve data synchronisation and integration between systems (Amista, 2024).

1.29trn

Wholesale & Retail Market Size

409.2K

Wholesale & Retail Number of Businesses

4.7M

Wholesale & Retail Industry Employment

The wholesale and retail trade sector is the largest employer in the UK, accounting for nearly one-fifth (18%) of the country’s workforce. Recent UK business facts indicate that 46% of individuals in this sector work for small or medium-sized businesses (Money.co.uk, 2024).

The industry seems to be back on an even keel post-pandemic, and 2023 has been a year of consolidation and growth through acquisition. The UK food supply chain has been truly tested over the past three years, and this has led to a desire to simplify the manufacturer-to-consumer journey to maximise supply and distribution efficiency (The Federation of Wholesale Distributors,2023).

Industry Challenges

New competition from various sources
The challenge of product-differentiation
Tackling the talent crunch
Adapting to Regulatory Changes

(Orderwise Forterro, 2024; Retail Computer Solutions, 2023)

However, supply disruption will continue to impact the industry’s range, pricing and promotions. Given the increasing gap between wage growth and the cost of living, staff will likely demand wage rises. Businesses are facing rising costs across the board. So, the majority will not be able to respond positively to these demands, likely leading to dissatisfaction and, ultimately, staff shortages (The Federation of Wholesale Distributors, 2023).

Industry Opportunities

Digital Transformation and real-time data
Investment in creative assets drives performance
AI is the future

(Retail Computer Solutions, 2023; Fashion United, 2023)