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The key to wholesaling success

A great write up about the key to development and growth in the wholesaling sector in Better Wholesaling; with a special mention for Today’s member wholesaler Dhamecha:

Investment is proving to be a key route to growth in the wholesaling sector. “The really good operators keep investing in their businesses, refurbishing, expanding, diversifying but most importantly, staying relevant to their customers in an ever-evolving marketplace,” says Bill Laird, MD of the UK’s largest buying group, Today’s Group.

wholesalingsuccessOne member wholesaler that hasn’t shied away from positioning its business for long-term growth is Dhamecha Cash & Carry, which reported a turnover of £585m last year, up 3.6% from the previous year.

The business, which has seven sites dotted around London and greater London, has developed its business by continuing to refurbish existing depots, as well as opening new ones.

MD Pradip Dhamecha says: “The opening of the Lewisham branch in November 2012 has helped us to grow market share and we have plans to open an eighth depot over the next year.”

But opening a new depot is no easy feat, particularly when all your business is in London. “You need to be where your customers are, but it’s still a balancing act for us. We need to be careful that when we open a new depot, it doesn’t cannibalise the others.”

The wholesaler’s Enfield depot was only 40,000sq ft and sold just beers, wines and spirits when it first opened. But organic growth made it necessary a few years ago to expand the depot to 55,000sq ft to include toiletries, soft drinks, confectionery and other key lines.

Bill Laird believes that Dhamecha has hit a winning formula: “They have a real knack for choosing great locations each time they expand their estate and they don’t shrink away from making the kinds of investment required for long-term success.”

Read full article >>


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