Major multiples are targeting caterers

By David Gilroy, controller, Bestway

Imagine a world with a competitor that has over 2,000 UK stores. An operator with a comprehensive internet trading capability, a delivery service and within a 10-minute reach of every caterer in the country.

Imagine a world where your competitor has such buying power that it commands the very best buying terms across a range of 30,000 product lines. A vendor that stocks the whole array of fresh food from butchery, bakery and produce through to fresh fish. Cutting, baking and preparing all these items to the specific requirements of its customers.

Imagine a competitor so aggressive that it will target entire categories to wipe out its opponents. It will take any form of payment available, let you shop at any time day or night and enable you to buy as little or as much as you want to without asking you for proof of identity. Then it will offer you loyalty rewards and discounts on future purchases.

Imagine no more. That competitor is here in the shape of the major multiples. And make no mistake they are remorselessly targeting your business. Something that we've long understood here at Bestway.

So, what to do? The first thing for cash and carries to understand is that "catering" is not just an add-on department with a range of big tins. Caterers expect the full shopping experience. They have to believe that you're serious about their business. They want quick service, time is vital to them no queuing at the checkout behind a wall of retailers' purchases. They expect to see new, different and fresh at every visit. They want advice, ideas and inspiration and they want them now. This is a great opportunity for cash and carries as no other trading format can offer this kind of service and engage with caterers in this way on one to one basis.

Membership-based cash and carries have a rich source of data relating to outlet types and spending patterns. This data can be harnessed for information which in turn can be used to shape marketing and promotions tailored to the specific requirements of caterers.

From food and alcohol through to washroom supplies, the range must be relevant. In this respect cash and carries can stock products that the multiples can't. Beer kegs, bag in box syrup drinks, bulk ingredients 25kg sizes, bulk disposables and a whole lot more.

Particularly important is the fresh food offering. There must be plentiful and consistent supplies of short-life products day in day out. Cash and carries with butcheries have a unique opportunity to connect with caterers by offering a cutting and portion control service not readily available in the multiples whose prime customers are domestic consumers. Of course, being successful in fresh food is dependent on high customer traffic. Now is the time to play to our strengths and maybe now is the time to broaden the customer base.