The report paints a clear picture of a sector under sustained pressure. While Scottish wholesalers continue to adapt and invest, they are doing so against a backdrop of tightening margins, rising costs, and growing geopolitical uncertainty.
Key findings
Trading conditions tightening: Although the past year appeared broadly stable, negative sentiment has increased sharply, with inflation masking underlying contraction.
Cautious outlook: 57% of businesses expect turnover to rise, but many predict real-term declines as costs continue to climb.
Margins squeezed: Purchase costs are rising faster than selling prices, forcing wholesalers to absorb increases and compress margins.
Workforce challenges persist: Recruitment remains difficult, particularly for HGV drivers and flexible roles—with some businesses reducing headcount.
Continued investment: Despite pressures, 41% plan to increase capital expenditure, prioritising technology, efficiency, and AI.
Growth strategies evolving: Members are expanding e-commerce, launching new ranges, and developing partnerships.
Geopolitical risk rising: 82% report impacts from global instability, with fuel security emerging as a key concern.
Overall, the findings highlight a stretched wholesale sector, but one that is adapting quickly, investing strategically, and focusing on efficiency rather than growth to navigate ongoing challenges.
