Sustainability, AI, people: the macro trends to watch this year
We are emerging from three bruising years, during which the industry hascircled the wagons and played safe. In this next era, inflationary pressureswill lift, and ambitious retailers will need to be more innovative to hit thosewell-published targets. The pressure will change, not disappear, as decreasingconsumer disposable income and a desire for greater health and environmentalsustainability […]
CPI issues dominated the GCA conference. Let’s stamp out the unfairness
The GCA conference last week had all the usual themes: GSCOP drives hugeimprovement, fear of retribution has half of suppliers refusing to use it. Butwhat was very different this year was that cost price increase (CPI) relatedissues dominated the conference. I’m glad that wasn’t ducked. It highlightsagain that CPI is a glaring omission from GSCOP […]
The role of the GCA isn’t in doubt. But the code is up for debate
Small business minister Jane Hunt by now has recognised her blunder intargeting the GCA role for efficiencies: the GCA office is funded by the 14retailers it governs. But questioning its suitability is right. After all, theGSCOP survey in June showed relations had deteriorated for the first time sincethe role was created. Overall, has GSCOP helped? […]
Heinz and Mars won’t beat Tesco in a PR battle over price rises
The Tesco vs Heinz/Mars pricing spats jog memories of Marmitegate in 2016, whenUnilever had its fall-out with Tesco. Before that, Heineken, and Walkers/Pepsiin the noughties, also had a six-month stand-off over pricing with Tesco. Italways seems to be Tesco involved on the retail side and a huge, brandedsupplier on the other. So why Tesco? Two […]
GSCOP survey highlights inflationary pressures, not lack of co-operation
When the GCSOP survey results are published, the industry coalface ismomentarily transfixed. This league table of retailer compliance is the bestthing the GCA office has ever done. It provides a rating of retailer behaviour,and in case you believe the headlines this week: yes, the retailers do care,and are in fact slightly competitive, about how their […]
We need an Australian-style GSCOP to support suppliers through CPIs
There’s no denying GSCOP has made a difference. Retailers take the codeseriously – even Amazon has scurried to adapt since falling under itsgovernance. It is however a very thin and vague document, which is unfit toassist suppliers in today’s inflationary marketplace and the overridingnecessity to implement cost price increases (CPIs). Groceries Code Adjudicator Mark White, […]
Why shrinkflation isn’t the crime it’s often made out to be
I’ve just had a call from a reporter asking for comment on the heinous crime of‘shrinkflation’. This happens at least once a year. Whenever someone notices aCreme Egg got smaller or a box has less powder in it, the hares go racing on aconsumer deception they’d love to be the first to expose. Imagine their […]
The UK economy is heading for stagflation. Protecting jobs will be critical
On top of an acute inflationary environment, we now have a European war thatwill take it to a new level. I believe the UK economy is on the brink ofstagflation – a combination of persistent high inflation, a stagnant economyand increased unemployment. Keeping jobs will be critical. The effect of the conflict on global commodities […]
Retailer delay tactics on cost price increases are crippling for smaller suppliers
As predicted, there is no sign of let-up on rising input costs and we are in anupward spiral of price hikes. Discounter and private-label shares are comingthrough as a result, and the major mults are pushing back on justifiablesupplier cost price increases (CPI) as best they can. Unable to turn the tide,the best tool retailers […]
Inflation is only just beginning. Suppliers and retailers have a rocky road ahead
Inflation is a curse for many, and this series of seemingly relentless costincreases is far from over. Back in September 2021, I predicted inflation wouldtop 5% before Christmas on BBC’s Today programme. Seeing the ONS published 5.4%for December, I feel obliged to add my view to the matrix of analysts assessingwhere it is heading in […]
