Wholesale markets could soon be a thing of the past, according to one leading player.
David Matthews, joint md of Bristol Fruit Sales, said he saw no reason for markets to exist in a physical sense outside of London by 2014.
"I don't necessarily think it will definitely happen, but I don't think we'll need markets as we've known them in the past.
"The definition of a market is a place where buyers and sellers come to meet and agree a price. Well not any more."
Speaking to delegates at the Fresh Produce Consortium Wholesale Division's annual conference about the future of the industry, he said with the changes in culture and technology, there was no longer a need for people to come to market to buy their produce. "Most of our business is no longer done face to face."
However, Gary Marshall, from the Covent Garden Market Tenants Association, said the industry should not abandon the market format. "We should be encouraging people to come down to the market and engaging with them face to face, rather than say its got to end."
But Matthews said it was vital the wholesale sector moved with the times: "The new chief executive of McDonalds said his company had become 'fat, dumb and happy'.
"They ignored the fact that things had changed, much like some of our members, and if a company like McDonalds can get things wrong, then so can we."
He said there was still a great deal of room for consolidation, particularly at the top of the wholesale sector.
"There's obvious cost saving synergies to be made within the leading companies. A lot of us are duplicating operations and services."
The Wal-Mart effect would also continue to impact upon the wholesale sector, he said: "I would suggest that Wal-Mart coming into the UK has been the single biggest thing affecting all business in retail. It has driven down prices and it has driven down operational costs.
"That isn't going to change and businesses wanting to compete are having to act in a likewise manner. That's going to continue to have an effect over the next ten years."
Investment was vital if the industry was going to continue: "It's not rocket science. The companies that are doing are all doing similar things, good practice and investment."
He said there also needed to be a greater degree of specialisation: "We can't be all things to all men anymore."
