Dhamecha: acquires two more depots as sales surpass £1.1 bn

Date : 02 November 2022

Patrick Mitchell-Fox

Senior Analyst

Major London-based cash & carry wholesaler, Dhamecha is to acquire two depots from midlands operator Hyperama in Nottingham and West Bromwich. This purchase will take Dhamecha’s total estate to 12 depots, increasing its presence in the midlands to four sites, with its existing locations in Leicester and Birmingham.

New sites to sustain Dhamecha’s strong record of growth

Against a background of a wider cash & carry sector that has seen only modest growth over recent decades, Dhamecha has stood out as an out-performer, continuing to expand while others have been static or even exited the market. In its last reported financial year for the 12 months to March 2022, Dhamecha’s sales grew 3.5% to £1,125m, achieving growth even against the significantly Covid-boosted comparative from the previous year, when sales shot up by 28.1%. This means that Dhamecha’s sales remain 32.6% higher than recorded immediately before the onset of the pandemic in early 2020. The addition of two further depots in new territories for Dhamecha will now give the wholesaler further growth opportunities amongst the independent retailers of these major urban areas.

Hyperama radically scaling back wholesaling operations

In contrast to the purely retail-channel focused Dhamecha, Hyperama has had a more chequered experience of the pandemic episode, in some measure due to its exposure to foodservice and catering business, which suffered badly during the lockdowns. Though Hyperama’s sales for 2021 were 2.4% above its pre-Covid number, its profitability has been significantly impacted and management is undertaking a major restructuring of the business in order to improve its financial position.

Hyperama effectively exiting cash & carry sector

As well as selling its Nottingham and West Bromwich depots to Dhamecha, Hyperama is also selling its third cash & carry site to another London-based wholesaler, Holland Bazaar, known for its focus on fresh produce. Furthermore, Hyperama has also divested both its delivered foodservice wholesaling operation Tiger Foods and its online drinks delivery operation Bring Me Drink.