Category Archives: Retail industry

Tesco boss: food inflation has probably peaked but prices will stay high

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Ken Murphy says higher costs of grocery imports because of Brexit are partly to blame for rising prices

The chief executive of Tesco has said food inflation has probably peaked but warns that prices are likely to stay high.

Ken Murphy, the head of the UK’s biggest supermarket chain, said the price of milk, bread, cooking oil and some vegetables such as broccoli had come down this month but inflation continued in other essentials, including rice and potatoes, as aweather issues and locked-in increases in the price of labour and energy continued to bite.

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Pyrex and Instant Pot maker files for bankruptcy protection in US

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Instant Brands, which blames rising interest rates for financial problems, will continue to serve retailers

The maker of Pyrex kitchenware and the Instant Pot pressure cooker has filed for bankruptcy protection, blaming rising interest rates for its financial difficulties.

Instant Brands, controlled by the private equity investor Cornell Capital, said late on Tuesday it had filed for Chapter 11 bankruptcy protection in the Southern District of Texas, as it tries to restructure liabilities of as much as $1bn (£790m).

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BA, Boots and BBC staff details targeted in Russia-linked cyber-attack

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Hack attributed to criminal gang hit MOVEit software used by third-party payroll provider Zellis

British Airways, Boots and the BBC are investigating the potential theft of personal details of staff after the companies were hit by a cyber-attack attributed to a Russia-linked criminal gang.

BA confirmed it was one of the companies affected by the hack, which targeted software called MOVEit used by Zellis, a payroll provider.

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Rise in UK breweries going bust amid thirst for cheaper craft beers

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45 breweries, mostly smaller makers, enter insolvency in last 12 months, up from 15 the previous year

The number of UK breweries going out of business has tripled in the past year, with smaller craft beer manufacturers most at risk as consumers opt for cheaper options during the cost of living crisis, according to research.

In total, 45 breweries entered insolvency in the 12 months ending 31 March, compared with 15 in the previous year, according to the most recent official Insolvency Service statistics analysed by Mazars, an audit, tax and advisory firm.

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No point in food price measures without targeting small stores, Which? warns

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Consumer group tells chancellor ‘blanket approach’ will not address poor households’ access to affordable food

UK ministers’ efforts to reduce soaring food shopping bills “won’t touch the sides” without measures to make small grocery stores more affordable for low-income households, the chancellor has been warned.

Which?, the consumer group, has written to Jeremy Hunt over concerns that a blanket approach to lowering supermarket bills will not address the problem of accessibility to affordable food, after reports that ministers are considering a voluntary price cap scheme.

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UK supermarkets cut diesel prices by 7p a litre after watchdog concerns

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Reduction follows CMA plans to grill executives about ‘sustained higher margins’ but RAC says retailers should go further

Supermarkets have cut more than 7p a litre from the price of diesel since the UK’s competition watchdog warned it would question retail bosses about unnecessarily high forecourt prices, according to the RAC.

The motoring group found that the average price of diesel fell by 7.44p a litre, from 151.02p two weeks ago to 143.58p this week, after the Competition and Markets Authority (CMA) raised concerns that retailers were making “sustained higher margins” from sales of diesel.

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Why it’s not quite back to the 70s with talk of food price controls

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Statutory caps were brought in under Heath, now the government wants a voluntary store scheme to meet Sunak’s pledge to halve inflation

A cost-of-living crisis. Pressure on the government to step in to help hard-pressed consumers. Calls for supermarkets to cut prices on staple food items. Substitute Rishi Sunak for Ted Heath, step into a time capsule and journey back to Britain in 1972.

Let’s be clear: ministers are not considering imposing the sort of statutory price controls on a loaf of bread, a pint of milk or a bar of soap that were put in place half a century ago. Not now and not ever, according to Whitehall sources. But it has emerged that Sunak and his team are certainly not averse to the big supermarkets coming up with their own voluntary agreement to reduce the cost of the weekly shop.

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UK food inflation falls in May, raising hopes prices may have peaked

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British Retail Consortium says rate fell from 15.7% to 15.4% even as rise in overall shop prices hits fresh high

Food inflation in the UK fell in May, lifting hopes that the rapid increase in grocery prices may have reached its peak after keeping the broader consumer prices index painfully high so far this year.

After more than a year of sharp increases in the price of food, the British Retail Consortium (BRC) said annual food inflation eased this month from 15.7% to 15.4%, even as the overall rise in shop prices hits a fresh high.

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Nationals push for $10m fines and ability to break up Coles and Woolworths if they abuse market power

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Exclusive: David Littleproud says former Coalition government was ‘too slow’ on compulsory grocery code of conduct

David Littleproud has offered to help Labor bolster competition law protections for farmers and suppliers in a bid to prevent potential abuses of market power by Australia’s big supermarkets.

The Nationals leader proposes making the grocery code of conduct compulsory, boosting penalties to a “punitive” $10m maximum and adding powers to break up grocery giants in the event of misconduct.

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Co-op members and board at odds over AGM vote on chicken welfare

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Motion to adopt Better Chicken Commitment carried by 96%, but directors cited need for low prices

Feathers are flying at the Co-operative Group after thousands of its members voted to improve welfare for chickens reared for meat at the annual meeting on Saturday – but were partly overruled by the company’s directors, who said they wanted to keep prices down.

A motion led by the Humane League UK campaign group asked the mutual to adopt the Better Chicken Commitment (BCC) – a set of standards adopted by the likes of Waitrose, Marks & Spencer and the Greggs bakery chain – and report on welfare improvements in a year’s time. It was supported by 96% of the 32,000 Co-op members who voted at the AGM.

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Treasury analysing whether removal of tampon tax has lowered prices

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Cost of period products has risen and campaigners say saving is not being passed on by retailers

The Treasury is analysing whether the removal of the “tampon tax” – trumpeted last week by Rishi Sunak as one of the benefits of Brexit – has helped lower prices at all, amid concerns the saving is not being passed on by retailers to women.

Responding to a written question from the Labour MP Ruth Cadbury, the government said a tax reduction was able to “contribute to the conditions for price reductions” and it was “looking into whether this important zero-rating is being passed on by retailers to women as intended”.

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Tesco chair to stand down after allegations of inappropriate behaviour

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John Allan, a prominent business leader and former CBI president, to leave role at AGM on 16 June

John Allan will stand down as chair of Tesco after allegations of inappropriate behaviour.

Allan, who has been chair of the UK’s biggest supermarket since 2015, will stand down at the retailer’s annual meeting on 16 June.

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Asda plans 5% pay cut for about 7,000 workers just outside London

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Supermarket is consulting about removing a 60p an hour supplement at 39 stores outside M25 despite the cost of living crisis

Asda is planning to cut pay for about 7,000 workers in stores close to London by about 5% despite the surge in the cost of living in Britain.

The UK’s third biggest supermarket, which was bought by the billionaire Issa brothers and private equity firm TDR Capital in 2020, said it was in consultation about removing a 60p an hour supplement from workers at 39 stores sited outside the M25 but near to the capital.

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Greggs wins right to late-night opening for Leicester Square bakery store

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Chain resolves heated debate with council amid concerns over antisocial behaviour

A heated debate over Greggs’ right to trade into the early hours in central London, amid warnings it could cause a wave of crime and disorder, has been resolved.

Greggs said it could now open its Leicester Square flagship store until 2am from Thursday to Saturday and until midnight through the rest of the week after Westminster council allowed it to sell hot drinks, such as tea and coffee, as well as its sausage rolls, pizza slices and steak bakes, after an 11pm curfew.

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Sunak food summit promises star guest and lots of rhubarb

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It’s hard to see the PM’s talks with farmers, store chiefs and the (rumoured) odd TV star producing concrete proposals

Farmers throwing in the towel amid soaring costs and labour shortages and falling domestic production of some foods have resulted in repeated gaps on British supermarket shelves – much to shoppers’ chagrin.

UK agriculture has had a torrid few years navigating the fallout from Brexit and the pandemic at a time when squeezed consumers are reassessing what they can afford to put in their shopping baskets.

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John Lewis boss faces confidence vote as business considers ways to seek new funds

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Sharon White wants to bring in investors to build flats above stores, potentially leading to the sale of stake in the business

The boss of John Lewis will face a confidence vote by staff members on Wednesday as the business considers the option of bringing in outside investment in a change that could threaten the decades-old employee-owned model.

Chairman Sharon White is considering radical ways to bring in up to £2bn to help secure the future of the John Lewis Partnership, including diversifying into building flats for rent above shops, after reporting hefty losses from its chain of department stores and Waitrose supermarkets.

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Pharmacist at former Sunak family chemist wary of PM’s health plans

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Jithender Ballepu says more staff and funding would be needed and has concerns about passing antibiotics over the counter

There is no plaque outside Bassett Pharmacy in Southampton to indicate this was once run by the prime minister’s mother but there is a sign round the back that gives the game away: “Parking for Sunak Pharmacy customers.”

Inside, the pharmacist Jithender Ballepu was expressing reservations about Rishi Sunak’s plans for chemist shops to provide prescriptions for millions of patients in England.

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The ‘coronation effect’: UK high street shelves being cleared of quiche and fizz

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Party products, including bunting, flying off shelves, with Britons forecast to spend £200m on weekend festivities

High street retailers are reporting a “coronation effect” sales boost as shoppers make a last-minute dash to the shops to stock up on party fare including bunting, champagne and cakes for this weekend’s celebrations.

With potentially more than £200m of extra sales riding on the festivities surrounding the coronation of King Charles, retailers’ shelves are being cleared of fizz, quiche, scones as well as buffet favourites such as pork pies and scotch eggs.

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More fruit and veg shortages to come as weather in UK and Spain hits crops

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Record heat in southern Europe and chilly start to British growing season spell more misery for shoppers

Shoppers have been warned they face more fruit and vegetable shortages, as temperatures in southern Spain soar to unprecedented levels while the UK growing season gets off to a late start because of cold, overcast weather.

Temperatures were expected to reach a new April record of 39C (102F) in parts of Andalucía on Friday amid a long-lasting drought that has affected the production of vegetables in Spain. Córdoba reached a record 38.8C on Thursday.

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HMV to return to flagship Oxford Street store after four-year absence

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First HMV shop was opened in 1921 by British composer Sir Edward Elgar and closed in 2019

HMV is to return to its former flagship store on London’s Oxford Street after a four-year absence. It is expected to reopen towards the end of this year, in time for Christmas.

The store was empty for an extended period after the music and entertainment company vacated the site in 2019, before most recently becoming home to one of the many American candy stores that popped up on Oxford Street during the pandemic.

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