THE BIGGEST wholesaler in the UK is expecting to boost its turnover by several hundred million in the new year once a groundbreaking deal takes full effect.

Palmer and Harvey, based in Hove, is one of the biggest private companies in the country with a turnover of £4.2 billion.

East Sussex’s biggest business, which supplies 90,000 retailer across the country and employs 350 staff in Hove, joined forces with Costcutter last year, but it is in 2015 when the full impact of the deal is expected to take place.

Managing director Martyn Ward (pictured right) told The Argus: “This is a groundbreaking deal which will add hundreds of millions in turnover over the next year.

“It will provide the best deal for suppliers and make them as competitive as possible in a difficult marketplace.

“It consolidates the company, brings volumes together and is really good for customers.”

Palmer and Harvey moved to Sussex after a previous boss’ children were enrolled at Roedean School and relocated the business, initially to Portslade and then to Davigdor Road.

The retail giant is the shirt sponsor for Sussex County Cricket Club – a stone’s throw away from its headquarters.

Mr Ward, former managing director of condom-maker Durex, said: “We like to put something back into the local community when we can.

“The opportunity came up with Sussex and it was a bit of last minute deal.

“They get a great amount of coverage and we think we can make more out of it in 2015.”

A more controversial part of the business is tobacco, with one in three cigarettes in the UK distributed by Palmer and Harvey.

The sector has been hit by anti-smoking health legislation, quitting smokers and the prospect of a ban on packet displays.

Mr Ward added: “Tobacco is a core part of the business and for the main part is in very good health and growing. It is absolutely legal and customers are making a choice.

“We’re expecting turbulent times but we can’t see tobacco disappearing from the shelves anytime soon.”

The company, which works with everyone from big-name retailers to independent convenience stores, is well-placed to take advantage of the changes in consumer spending, as shoppers turn their backs on megastores in favour of convenience, daily shopping, local produce and budget newcomers such as Aldi and Lidl.

Mr Ward said: “There’s now something emotionally positive about getting something for good value.

“Certainly we’re seeing less loyalty and more online shopping.

“Everything in business is cyclical with the move back towards smaller stores.

“I think it’s really good that consumers are looking to shop more regularly and more locally “It’s a great market to be in and we see our business only benefiting from these changes.”