Industry Analysis & Industry Trends
Growth in the Grocery Wholesaling industry has been inconsistent over the past five years as intense competition and rising production costs drive food manufacturers and supermarkets to bypass middlemen. In addition to rising external competition from wholesale bypass, weak economic conditions during the recession led consumers to purchase more low-margin food products, reducing profitability and forcing the exit of some companies from the industry. This, in turn, has resulted in a continued trend toward consolidation among grocery wholesalers. Growth will remain marginal in the coming five years as wholesalers seek new markets and opportunities to mitigate their diminishing role in the grocery supply chain... purchase to read more
Industry Report - Industry Investment Chapter
The Grocery Wholesaling industry has a low level of capital intensity. Expenditure on capital for this industry comes in the form of computerized inventory systems, shelves and refrigerators and freezers to store food items. The industry's use of capital has been increasing through technological advancements, which have enabled computers to take over tasks traditionally performed by labor, such as ordering. There will always be a need for some labor components to be involved in checking that orders are correct.
Labor costs are incurred through the transportation of products to customers, taking orders and maintaining inventory levels. The predominant function of the overall wholesaling industry is to get the product to the market... purchase to read more