Wholesale News July 2026 – TWC Monthly Feature with Tanya Pepin
The wholesale sector is standing at a crossroads. Consumer spending hasn’t collapsed – it has simply moved, flowing into channels that have innovated faster and responded more directly to changing shopper needs.
In July’s Wholesale News feature, TWC Managing Director, Tanya Pepin, delivers a clear message: the time for action is now.
With structural pressures mounting, new competitors accelerating, and consumer behaviour evolving at speed, wholesalers must rethink how they invest, how they support retailers, and how they position themselves for the future. This article explores the data behind the challenge and the strategic nudges that can help the channel move forward.
It’s Wake‑Up Time: Why the Channel Must Change
“Consumers are spending as much as they ever have, but this spend is now flowing away from wholesaler‑supplied convenience retail.”
Despite widespread belief that consumers are tightening their belts, the latest ONS data shows that total consumer spend is not in decline. Instead, spend is shifting into:
- Direct‑to‑consumer platforms
- Subscription models
- Delivery services
- Alternative channels that have innovated faster than wholesale
Convenience retail supplied by wholesalers is losing share because other routes to market have built solutions the independent channel has not yet matched.
Hospitality is performing better, but its modest growth is inflation‑led, not driven by increased transactions.
The Pressure Cooker: Rising Costs & Structural Change
Over the past five years, consumers have faced 30–40% food price inflation, while wages have lagged behind. At the same time, wholesalers are grappling with:
- EPR
- DRS
- MUP
- Tobacco & vape legislation
- Higher NI
- Increased operating costs across the board
These pressures are structural — and they are not going away.
Wholesalers, built on tight margins, often adopt a “minimal cost” mentality. But this limits investment in:
- New services
- Digital capability
- Consumer‑led innovation
- Retailer support
- Future‑proofing the channel
With limited staffing and systems, many operators are stuck in day‑to‑day trading, unable to step back and think strategically.
A Cautionary Tale: The Vape Category
The vape boom is a stark example of what happens when wholesale doesn’t move fast enough.
“The channel watched from a distance… while other routes to market moved swiftly.”
Initially dismissed as messy and complex, vapes exploded in other channels while wholesale hesitated. The result? A huge opportunity cost and a clear reminder that consumer demand will always find a route – with or without wholesale.
Innovation: Move Forward, But Choose Partners Wisely
Tanya warns against blindly adopting external solutions without assessing whether providers truly understand wholesale.
The sector has repeatedly seen:
- Tech firms underestimate wholesale complexity
- ERP providers misjudge back‑office needs
- Data businesses misinterpret market realities
- Consumer‑facing agencies fail to grasp wholesale audiences
The answer isn’t to reject innovation – it’s to ask better questions and choose partners who demonstrate:
- Genuine commercial commitment
- Emotional investment in the sector
- Proven wholesale expertise
- A track record of long‑term delivery
A business with multiple wholesale clients has skin in the game. A business chasing fast returns does not.
12 Strategic Nudges for Wholesalers Serving Retail
Tanya sets out twelve practical prompts to help wholesalers refocus, innovate and support retailers more effectively:
- Can you demonstrate that supplier investment is reaching the consumer?
- Can you prove sell‑through, not just stock loading?
- Are you helping retailers respond to consumer demand, e.g., home delivery?
- Do you offer advice on changing tastes and emerging categories?
- Is your chilled and frozen fulfilment reliable?
- Do you know you’re delivering great service levels and pricing?
- Do you know who your most profitable customers truly are?
- Have you segmented customers by recency, frequency and value?
- Have you analysed what customers aren’t buying?
- Do you have a reward mechanism for the right customers?
- Are you sharing this thinking with your wider team?
- Do you have a clear growth plan — or are you treading water?
These nudges are designed to help wholesalers shift from reactive trading to proactive strategy.
A Success Story: Independent Foodservice
There is good news and it comes from within wholesale’s own ecosystem.
Independent foodservice outlets are driving hospitality growth:
- Total hospitality value +2.5%
- Chains +1%
- Independents +4.3%
- Independents now hold 45% of the market and are growing share
Consumers are voting with their feet, choosing independent hospitality for quality, experience and value.
This success can be replicated in retail. Wholesalers who invest in their best customers, build strong retail estates, and design stores with the consumer front of mind will pull ahead – fast.
The wholesale channel is not losing because consumers are spending less — it’s losing because other channels are innovating faster. The message from Tanya Pepin is clear: the time for change is now.
By investing wisely, choosing partners with genuine wholesale expertise, and supporting retailers with the tools they need to meet modern consumer expectations, wholesalers can reclaim spend, strengthen loyalty and build a future‑proof channel.
Contact us to find out how TWC can help your business.
