Bestway Wholesale is making significant strides in the UK foodservice sector by announcing an investment of over £2.5 million aimed at reducing the cost prices of more than 11,000 best-selling branded products across various categories. This initiative, announced by Managing Director Dawood Pervez, is designed to assist retailers in enhancing their profit margins and maintaining competitiveness against larger convenience operators.

As part of its broader strategy, Bestway will also eliminate the fuel levy charge for all mainland Costcutter stores effective from 1 January 2025. This charge, which had fluctuated due to volatile fuel prices, was previously set at £3.66 per delivery. The move to remove the levy is seen as a way to further support retailers in a challenging economic landscape, particularly as they face impending increases to the National Living Wage and National Insurance contributions scheduled for April 2025.

Pervez highlighted the struggles retailers have encountered since the confluence of Brexit and the COVID-19 pandemic. He expressed concern that these changes, alongside persistent inflation and a slower-than-expected reduction in interest rates, could impact consumer spending power. "There’s no question this will impact on retailers at a point when it’s clear that consumers will have less money in their pockets," he commented, emphasising the urgency of supporting retailers at this juncture.

Bestway's decision to invest in cost reductions and scrap the fuel levy stemmed from direct feedback from its Costcutter retailers, who welcomed the initiative as timely and beneficial for their businesses. The company also reported that in 2024 it had allotted over £10 million in rebates to these retailers, emphasising a commitment to helping them maximise their profits during increasingly difficult market conditions.

Looking ahead, Bestway has plans for further investment in 2025, which includes co-investment in retailers' businesses through funding for refits and store modernisation. Pervez reiterated the company's commitment to supporting its partners, stating, "We’re 100% committed to our loyal retailers’ success and believe that ‘together we are stronger’ if we face the challenges the industry is experiencing with a shared approach."

This array of initiatives from Bestway signifies a strategic effort to strengthen ties with retailers and ensure their operational sustainability amidst fluctuating economic conditions and consumer behaviour patterns.