Report reveals wholesale profitability concerns alongside online
The Lumina Intelligence UK Wholesale Online Report 2023 reveals that inflation, energy hikes and staff costs, alongside ongoing volatile consumer sentiment, are having a major impact on retail and foodservice businesses
The report shows 67% of retailers are worried about energy costs, while 63% cite inflation as a major concern with both presenting huge challenges to profitability.
However, the report also reveals the benefits of e-commerce for wholesalers, maximising reach and boosting operational efficiencies. For retailers, digital solutions can enable the cheapest possible price and offer a personalised shopping experience through tailored promotions and product recommendations.
The report reveals that online-delivered is the main way that retailers purchase from wholesalers, currently standing at 71%, demonstrating the growing importance of the online channel. During 2023, wholesalers have launched successful digital solutions focused on tailored category advice and personalised promotions.
Digital communications such as WhatsApp are seen as driving engagement and delivering a personalised experience, especially when messages are sent at the most effective times of day. For suppliers, B2B WhatsApp messages are key to boosting promotions, targeting higher spend and reaching a broader retailer audience.
With a very high proportion of website search users never going past the first page of results, optimising internal search functions and media placements are key for ease of online navigation and engagement. Suppliers can collaborate with wholesalers to advise on clear taxonomy of products so that, for example, foodservice operators can easily find dietary alternative solutions on their platforms.
Categories Digital news