Twg targets £5 billion in turnover with retail focus and data-driven growth strategies

The Wholesale Group (TWG) sets ambitious plans to reach over £5 billion in turnover by expanding its retail and foodservice divisions through data, AI, and strategic member recruitment amid market pressures.

The Wholesale Group (TWG) has set out ambitious growth targets for the year ahead, forecasting overall expansion of 12.5% across its two divisions , 10% in foodservice and 15% in retail , as it looks to harness scale, data and category change to deepen its hold on ...

According to TWG’s presentation at its Senior Supplier Briefing, the buying group now counts 225 members who collectively serve nearly 350,000 customers and exercise buying power in excess of £4.5 billion, representing roughly 13.7–14% of the UK wholesale market. The group was formed from the merger of Confex and Fairway Foodservice in January 2025 and, the company says, delivered a 6.51% uplift in group performance in its first year, with average member spend rising by 14.5%. TWG has set a longer-term ambition to reach more than £5 billion turnover as a group.

Retail strategy and drivers
TWG executives told suppliers they see the biggest near-term upside in retail, where managing director Tom Gittins described independent wholesale as “the fastest growing sector in the market, with discounters racing to the bottom and the supermarket saturated.” The retailer-facing plan stresses maximising ranging, member diversification, strategic recruitment and smarter use of data and AI, alongside ESG leadership as a differentiator.

Retail growth accelerators highlighted at the briefing include a “frozen retail explosion” as convenience stores embrace freezers and longer shelf-life products; the crossover sale of large-format foodservice packs into retail; category diversification away from traditional ambient ranges; and a rising focus on “food for tonight” convenience occasions. TWG said member engagement is deepening , average suppliers per member rose to 22.1, up 12.6 points , and that new members in 2025 generated around £180m of incremental retail spend.

Foodservice outlook
Foodservice was presented more cautiously. The foodservice managing director warned that independent foodservice wholesalers increasingly need the scale and services of a buying group to survive, saying: “It’s a tough market out there.” Key foodservice priorities mirror the retail agenda on data and AI, with a stronger emphasis on market intelligence, product performance tracking, targeted member engagement, category opportunity identification and investment in team development to strengthen local communities.

Technology, data and supplier collaboration
Across both channels TWG is positioning data, AI and supplier collaboration as growth multipliers. The group pointed to improved compliance and data insight as a means to provide better, more targeted listings and promotions for suppliers. Proposed supplier-facing initiatives include tighter product performance reporting, opportunities for limited-range private label volume offers and expanded alcohol ranges to drive incremental spend.

Supplier reaction and market realities
Panels involving members and suppliers at the briefing underlined persistent pricing pressure in the market. Andrew Kirby, commercial director at Holland Bazaar, told delegates: “We are asking for more price parity from suppliers. Even as big as we are we sometimes still go to Tesco and buy stuff cheaper than direct from the supplier.” TWG’s managing director for TWC also warned delegates about shifting consumer behaviour driven by health trends, noting the growth of weight loss injections and their early impact on purchasing patterns: “This is only the start.”

Recent progress and governance
Industry reporting and TWG statements show the group added 11 new members since its launch, bringing total membership to 225 and increasing annual turnover to about £4.52 billion. The group now operates some 257 depots and, in October 2025, its chair described the first-year performance as encouraging. In other governance moves, TWG appointed Mark Aylwin as non-executive chair from 1 September 2025; Aylwin brings more than 35 years of sector experience, including senior roles at Booker Group, Blueheath and Musgrave, and a previous chair role at Unitas Wholesale.

Event wrap and outlook
Jess Douglas, managing director, People & Operations at TWG, closed the briefing saying: “The Senior Supplier Briefing underlined our commitment to transparency, partnership and creating long-term value across both retail and foodservice channels. It was a reminder not only of how we have come, but more importantly where we are going next. We have a target to reach £5bn turnover as a group and we’re aiming to get there through smarter use of data and AI, strategic member recruitment, ESG leadership and deeper collaboration with our members and supplier partners.”

TWG’s near-term plan will be tested by ongoing price competition, shifting consumer behaviours and the effectiveness of its data and supplier engagement programmes. For suppliers and independents seeking growth, the buying group is selling scale, analytics and marketing capability as the route to capture the convenience and food-for-tonight demand that the group argues will drive the next phase of wholesale growth in the UK.

Source: Noah Wire Services