Data and insight: Show me the money

TWC’s Tanya Pepin shares with Wholesale News the simplest ways in which wholesalers can unlock a staggering sales opportunity

What would you do if I told you that the wholesale channel could generate £2bn of additional sales? After all, very few businesses would turn down a £2bn opportunity, particularly during a period where consumer confidence is the lowest it has ever been [1] and business confidence by the end of 2025 was the lowest it has been in three (long) years [2]. Certainly, every wholesaler I speak to suggests that the channel is the toughest that it has been for a generation.

So back to this £2bn additional sales… TWC’s Insight Director, Jayne Webb, calculated that convenience retail could grow by £1bn if wholesaler-supplied convenience stores could gain just one more transaction per store per day and if just 10% of those new baskets contained one more item. Jayne also worked out that foodservice could achieve an extra £1bn if a third of the population spent just £1 more in hospitality every month and made one extra visit in a three-month period.

This sounds easy, but how achievable is this? Well, TWC research tells us that there are circa 50 million out-of-home meal or snack occasions each day, so there is certainly enough demand to drive footfall. Specifically, for convenience the average convenience shopper will visit a convenience store once per week, but this is alongside 10 visits to other channels. In fact, customers are visiting supermarkets to do top-up shops more than convenience stores – our analysis tells us that one-third of all supermarket transactions are under £10, despite a whopping 78% of the UK population living within five minutes of an independent convenience store. So the question here is how do we redirect consumers?

FOODSERVICE

For hospitality, there is growth but it is below inflation, as is average spend. Overlay the record high cost of doing business and every single pound of revenue matters.

Consumers face more choice than ever. Channels are blurring and a consumer can choose between a forecourt, supermarket, delivery platform and an array of hospitality venues as well as convenience retail, so winning the footfall battle is key and, once won, retaining that customer is essential.

While this sounds like a problem for operators, it is clear that many rely on their wholesaler for business advice, but advice for convenience retailers and hospitality operators has to be different.

For retailers, the advice needs to focus on going back to basics – driving footfall requires an enticing store that meets the needs of its local community. Retailers need to get consumers through the door and then encourage them to buy more once they are inside.

SmartView Convenience data shows us that symbol stores in our read sell 30% more than unaffiliated stores. It makes sense, as symbols traditionally offer better standards, a well-executed range, own-brand options and promotions to drive broader sales.

TWC has previously asked shoppers what their main mission was in independent retail compared to a multiple convenience store and almost half (49%) of independent shoppers said they were there to buy a quick snack, whereas 52% of multiple convenience shoppers were there for a top-up shop. Winning shoppers and driving basket spend is key to unlocking the £1bn.

INDEPENDENTS

However, hospitality’s challenge is different. It is in growth and independents are the stronger part of the market with higher transaction values and higher growth in the number of transactions. More than half (55%) of the channel is chain outlets, but growth in independents means that chain share is declining while the overall market is growing.

So, the metrics are fine, but driving frequency is key. Surprisingly, in the average hospitality venue around 65% of customers are only seen once, which means that only one in three customers return multiple times. Converting even a small proportion of this 65% into repeat visitors represents a significant opportunity.

Once you have a customer on premise, as with retail, you must drive upsell. TWC research highlighted last year that one in three diners leave venues without spending their full intent. This can be driven by availability, service or the offering but, as with retail, understanding the core consumer from demographics to day part to distance travelled and meal occasion will inform the offering and facilitate upsell.

Equally, when we spoke to customers, a quarter said that promotions, deals and loyalty influenced their choice of venue.

Hospitality has a stronger foundation than convenience, but it is competing for spend like never before. According to the Office for National Statistics, the average household spends just 11% on food and non-alcoholic drink and 7% on restaurants and hotels each week. Meanwhile, the UK is seeing significant growth in spend on digital media, foreign travel, music and sports events.

Wholesale has always had some worthy opponents but now, more than ever, is the time for wholesalers to help their hospitality and convenience customers fight for footfall like never before.

SUPPORT YOUR CUSTOMER TO FIGHT FOR FOOTFALL

1 Be data-led with your advice. Let the data make the argument and it removes all emotion from the discussion.

2 Use demographic data when you are looking at how to recruit and retain convenience retailers and hospitality operators. This data is essential to help you understand the operator’s potential and how to position their range or menu.

3 If you have created a model that can deliver growth for your customer, then share the risk and demonstrate your belief in your model and your faith in the operator’s potential (with some legal tie-ins, of course!).

4 Only run with those that want to run. Some outlets talk about change but never will, so don’t waste time and energy convincing them. Instead, invest in the ones who show ambition and a growth mindset.

5 Share your own sales data and collate your own outlet data so that your customers can benchmark themselves. People are competitive and will want to know how they compare to their rivals.

6 An oldie but a goodie: consider study tours. After all, nothing beats peer advice, sharing war stories and seeing success to inspire. Customers often operate in a vacuum, which isn’t healthy, helpful or instructive.

7 Get operators (both retail and catering) to understand the ‘experience premium’. This doesn’t have to be Harrods or Michelin star level, but it should reflect great value for the price point and be a positive and memorable experience.

8 Remind your retail and catering customers that consumers will usually only give you one chance, so don’t blow it!

(Sources: [1] GFK Consumer Confidence; [2] ICAEW Business Confidence Monitor)

data Foodservice hospitality retail sales Tanya Pepin TWC