A passionate journalist with about a decade of experience, Pooja has developed a strong hold on the UK grocery retail sector. From exploring legislative changes, supply chain shifts, consumer buying habits, trends to retail crime, her work is driven by a deep belief in investigating, finding the truth and telling authentic unbiased stories.
Be it convenience pathbreakers, wholesale trendsetters or Post Office Horizon scandal victims, Pooja has an equal flair for deciphering industries as well as human complexities. At Asian Trader, she aims to bridge the gap between policy, trade, and the shop floor, always keeping a finger on the pulse of what matters most to retailers.
With newly appointed prime minister Liz Truss taking charge at a time when the economy is in a gloomy mood, the retail sector is pinning its hopes on this change in command.
When Truss took the oath of leadership and loyalty on September 6, just two days before the Queen’s death, a myriad of issues already needed her immediate attention, topmost among which were soaring energy costs and rising inflation.
Inflation unexpectedly cooled in August to 9.9 per cent although economists are still cautious of calling the peak. According to Bank of England, inflation will jump to 13 per cent as the energy crisis intensifies, while Citigroup estimates that inflation could even peak at 18 per cent in early 2023 – and Goldman Sachs forecasts it to breach 20 per cent if current natural gas prices remain on the rise.
Energy bill and Tax Cuts
Soon after taking charge, Truss capped soaring consumer power bills for two years. She told parliament on September 9 that average household bills would be held at around £2,500 a year for two years, sidestepping the expected 80 per cent leap that was due in October. Former Finance Minister Rishi Sunak’s energy rebate package for households will remain in force.
For businesses, the announcement came a couple of weeks later on September 21 when business secretary Jacob Rees-Mogg unveiled a raft of new support measures.
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Through a new Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers – including all UK businesses. This support will be the commercial and industrial equivalent to the Energy Price Guarantee put in place for households.
Under the new guidance, the government will provide a p/kWh discount on wholesale gas and electricity prices for all non-domestic customers. The government has set a Supported Wholesale Price, which is expected to be £211 per MWh for electricity and £75 per MWh for gas.
This represents less than half of the wholesale prices anticipated for the coming winter. Green levies paid by non-domestic customers have also been removed. Businesses do not need to apply to take any other action to access the Energy Bill Relief Scheme, with the discount automatically applied to bills.
Retailers’ bodies welcomed the move with Association of Convenience Stores (ACS) calling the government’s support package a “lifeline for the UK’s local shops that will enable them to keep trading and serving their communities”.
Retailers indeed have been struggling under increasingly crippling energy bills, with some fearing the very future of the business to be in danger. They are resorting to energy-saving tactics such as minimising the use of lights and chillers/freezers, and switching off the fridges altogether at night.
Pointing out that the recently-announced measures should prove more than “just a quick fix”, Federation of Independent Retailers (The Fed), has called on the government for firm assurance over the future course of policy and aid.
Jason Birks, National President of Fed
The Fed’s National President Jason Birks told Asian Trader that it is pleasing to see “our calls for a reduction in energy bills and a cap on tariffs have finally been answered”.
“However, it is vitally important that this is not just a quick fix. The government has said it will review the situation in three months, and we need firm assurances that ongoing financial support will be available as long as it is needed to see us through this crisis.
“It is about the survival of small businesses, helping them to remain at the heart of their local communities and continue to provide vital services,” he said.
Close on the heels of an energy relief scheme for businesses came the mini-budget. In delivering it, the new Chancellor of the Exchequer (and friend of Asian Trader) Kwasi Kwarteng said his statement will provide the “biggest package in generations” of tax cuts to send a clear signal that economic growth is the government’s priority. He announced the 45 per cent additional rate income tax band for those earning more than £150,000 will be scrapped entirely.
Kwarteng also added that next year’s increase in corporation tax from 19 per cent to 25 per cent will be jettisoned, and also confirmed the 1.25 percentage point National Insurance rise introduced earlier this year will be cancelled from November 6.
Birks from the Fed welcomed the mini-budget announcements, calling them a “lifeline” for local stores:
“By scrapping the increase in National Insurance contributions and the Social Care Levy, as well as reversing the proposed rise in Corporation Tax, the new Chancellor of the Exchequer has thrown us a lifeline,” he said.
HFSS and sugar tax
Apart from the announced measures, PM Truss is anticipated to have some game-changing moves in store that will have a direct impact on the grocery sector.
It is now being rumoured that Truss will scrap the government’s anti-obesity strategy after ministers reportedly ordered an official review of measures designed to deter people from eating junk food. The review could enable Truss to lift the upcoming ban on HFSS products being displayed at checkouts as well as re-enable “buy one get one free” multi-buy deals in shops. The restrictions on advertising certain products on TV before the 9pm watershed could also be ditched.
The reports of Truss’s alleged plans have created a stir in the sector, which was already marred with confusion over whether it will be applicable to smaller stores or not. The restrictions, set to come into force from October 1, will apply to medium and large retailers (with 50 or more employees) offering pre-packed food for sale in store and online, including franchises and “symbol group stores”. Micro or small businesses (businesses with fewer than 50 employees) are exempt from the volume price promotion and location restrictions, according to gov.uk.
Food and Convenience retail industry expert Scott Annan however believes that HFSS, if implemented, should be free from such discrepancies.
“If HFSS is part of a government strategy to improve the health of the nation then it should be universally implemented without retailer or hospitality exceptions,” Annan told Asian Trader.
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However, the reports of HFSS restrictions of being rolled back have been met with a predictable backlash from health authorities. Last week officials at the Office for Health Improvement and Disparities said they were “aghast” at the prospect of the new prime minister scrapping plans to battle junk food consumption.
Convenience and foodservice specialist Dev Dhillon echoed the opinions of health campaigners:
“I would like to see the government maintain its stance on regulation such as HFSS. I know that I may be going against the views of stakeholders in our industry, but I maintain that it’s not in our long-term interest to be damaging the health of our customers,” Dhillon told Asian Trader.
It is not only HFSS restrictions; Truss is also said to be preparing to scrap sugar taxes on soft drinks to ease the cost-of-living crisis in the country, The Times claimed, citing government sources.
However, there are still “question marks” over how the prime minister can overcome a number of legal and parliamentary procedural obstacles to scrap the soft drinks industry levy which was introduced in 2018 as a result of its inclusion in the Finance Act 2017.
Road Ahead
PM Truss is also reportedly mulling whether to launch a major review of Britain’s visa system, as the country faces acute labour shortages leading to major supply issues in the fresh produce and meat sectors.
The prime minister is set to defy some of her anti-immigration cabinet colleagues by making changes to the “shortage occupation list”, thereby lifting the cap on foreign labourers working in British seasonal agriculture.
The visa scheme, which was introduced to plug gaps in the agricultural workforce, has enabled 38,000 visas to be issued to farm workers — but the sector has warned that this is not generous enough to tackle severe ongoing labour shortages.
Business figures have welcomed the decision, with some described the move as a “real signal” that the government was serious about encouraging economic growth.
Going forward, the business rates is the next big area where Truss can make a difference.
Retail expert Dhillon also feels one of the areas where the government has an immediate and realistic ability to influence change is with business rates.
“Our business rates system is antiquated. It doesn't reflect the modern nature of commerce and is an outlier when compared to other developed economies. If radical change isn't implemented soon, we will continue to see a rise in vacant retail units and the associated impacts on communities,” he said.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium (BRC), agrees with Dhillon’s point of view regarding business rates.
Helen Dickinson, Chief Executive of the British Retail Consortium
“One immediate way the government can help retailers support their customers is to freeze the business rates multiplier for all retail businesses for the next financial year, protecting the industry from rates increases linked to inflation, and giving greater scope to hold down prices, protect jobs, and support the economy,” Dickinson told Asian Trader.
Truss is also considering cutting value-added tax (VAT) by five per cent across the board to help tackle the cost-of-living crisis. The last time the UK implemented a broad-brush cut to VAT was during the 2008 financial crisis.
A VAT cut can come in the form of such a broad-brush approach applicable to all sectors, or via a more targeted approach, resembling what is happening in many EU countries that are bringing-in VAT cuts in inflation-hit essentials like food, toiletries, cleaning products, and some categories of clothing.
Jason Birks emphasizes that more help and support is needed for the betterment of local stores.
“We will continue to push for more help on behalf of our members to ensure they have a viable and sustainable future,” Birks said.
BRC, meanwhile, feels that PM Truss will need to demonstrate “strong leadership” as the cost-of-living crisis deepens, saying retailers will continue to play their part, keeping prices “as low as possible” and helping households by offering discounts to vulnerable groups, expanding value ranges, raising staff pay, and offering reduced-cost or free children’s meals.
“The retail industry is ready to work with the new government to shore up consumer confidence and help deliver economic growth. Businesses need clarity on the government’s intentions as soon as possible so they can understand the inflationary impact of any policy decisions,” she concluded.
Chewing gum releases hundreds of tiny plastic pieces straight into people's mouths, researchers said on Tuesday, also warning of the pollution created by the rubber-based sweet.
The small study comes as researchers have increasingly been finding small shards of plastic called microplastics throughout the world, from the tops of mountains to the bottom of the ocean - and even in the air we breathe.
They have also discovered microplastics riddled throughout human bodies - including inside our lungs, blood and brains - sparking fears about the potential effect this could be having on health.
"I don't want to alarm people," Sanjay Mohanty, the lead researcher behind the new study which has not yet been peer-reviewed, told AFP.
There is no evidence directly showing that microplastics are harmful to human health, said Mohanty of the University of California, Los Angeles (UCLA).
The pilot study instead sought to illustrate yet another little-researched way that these mostly invisible plastic pieces enter our bodies - chewing gum.
Lisa Lowe, a PhD student at UCLA, chewed seven pieces each of 10 brands of gum, before the researchers then ran a chemical analysis on her saliva.
They found that a gram (0.04 ounces) of gum released an average of 100 microplastic fragments, though some shed more than 600. The average weight of a stick of gum is around 1.5 grams.
People who chew around 180 pieces of gum a year could be ingesting roughly 30,000 microplastics, the researchers said.
This pales in comparison to the many other ways that humans ingest microplastics, Mohanty emphasised.
For example, other researchers estimated last year that a litre (34 fluid ounces) of water in a plastic bottle contained an average of 240,000 microplastics.
'Tyres, plastic bags and bottles'
The most common chewing gum sold in supermarkets is called synthetic gum, which contains petroleum-based polymers to get that chewy effect, the researchers said.
However packaging does not list any plastics in the ingredients, simply using the words "gum-based".
"Nobody will tell you the ingredients," Mohanty said.
The researchers tested five brands of synthetic gum and five of natural gum, which use plant-based polymers such as tree sap.
"It was surprising that we found microplastics were abundant in both," Lowe told AFP.
David Jones, a researcher at the UK's University of Portsmouth not involved in the study, said he was surprised the researchers found certain plastics not known to be in gum, suggesting they could have come from another source in the lab.
But the overall findings were "not at all surprising", he told AFP.
People tend to "freak out a little bit" when told that the building blocks of chewing gum were similar to what is found "in car tyres, plastic bags and bottles", Jones said.
Oliver Jones, a chemistry professor at Australia's RMIT University, said that if the relatively small number of microplastics were swallowed, they "would likely pass straight through you with no impact".
"I don't think you have to stop chewing gum just yet."
Lowe also warned about the plastic pollution from chewing gum - particularly when people "spit it out onto the sidewalk".
The National Confectioners Association, which represents chewing gum manufacturers in the United States, said in a statement that the study's authors had admitted "there is no cause for alarm".
"Gum is safe to enjoy as it has been for more than 100 years," it said, adding that the ingredients were approved by the US Food and Drug Administration.
The study, which has been submitted to a peer-reviewed journal, was presented at a meeting of the American Chemical Society in San Diego.
A.G. Barr, the company behind popular UK beverage brands like IRN-BRU and Rubicon, has on Tuesday announced its decision to discontinue its Strathmore brand.
This announcement comes as the company reported its results for the year ended 25 January 2025, showcasing strong revenue growth and increased profitability.
The discontinuation of Strathmore could lead to the closure of the manufacturing site in Forfar, Scotland, subject to employee consultation.
Despite this, the company's overall performance has been robust. Revenue increased by 5.1 per cent to £420.4 million, driven largely by a 6.4 per cent growth in soft drinks. Rubicon and IRN-BRU were particular highlights, with distribution gains and successful new product launches contributing significantly to this growth.
Adjusted profit before tax saw a substantial increase of 15.8 per cent, reaching £58.5 million. The company's strategic programme to improve operating margin is reportedly ahead of schedule, with adjusted operating margin up by 130 basis points to 13.6 per cent.
A.G. Barr also reported a strong financial foundation, with net cash at bank of £63.9 million. Shareholders are set to benefit, with adjusted return on capital employed improving to 20.1 per cent and adjusted EPS up by 17.4 per cent. The company has also recommended a final dividend of 13.76p.
A.G. Barr said current trading aligns with expectations, and the outlook for the 2025/26 financial year anticipates continued revenue growth and margin improvement. This positive forecast takes into account the 53-week year, the proposed Strathmore discontinuation, and additional regulatory compliance costs.
“2024/25 was a successful year for the company,” Euan Sutherland, chief executive, said. “Looking forward, we have a refreshed strategy centred on growth and are committed to our long-term financial targets. I am confident that successful execution of our plans will see another year of positive progress towards our long-term goals.”
In February 2025, A.G. Barr announced an organisational simplification, integrating Barr Soft Drinks and FUNKIN into a unified operation.
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Scottish Anti-Illicit Trade Group relaunches to combat counterfeiting
The Scottish Anti-Illicit Trade Group (SAITG) has relaunched this month, with the aim of combating counterfeiting and intellectual property crime in Scotland.
Supported by the UK Intellectual Property Office (IPO), the group brings together law enforcement, government and businesses to strengthen Scotland’s fight against this illicit trade.
According to IPO research, almost one in three of those asked (29%) across the UK have purchased counterfeit goods in the past. Almost one in five (19%) said they purchase them often, sometimes or on an occasional basis.
For 2021, the overall estimated value of imported counterfeit goods into the UK was over £7 billion.
The group will focus on developing best practice and enhancing collective strategies to tackle the supply of counterfeit goods across Scotland. They will form a coordinated response to protect Scottish products, businesses and consumers from the threat of IP crime.
“The Scottish Anti-Illicit Trade Group has an important role to play in disrupting the production and distribution of counterfeit and illicit goods," Scottish justice secretary Angela Constance said.
"As well as harming legitimate businesses, the profits of such activities fund other criminal activity. The Serious Organised Crime Taskforce, which I chair, will continue to work with the SAITG to do everything we can to tackle this illegal activity.”
Panel discussion at the relaunch of the SAITG on 3 March 2025
SAITG brings together members including the Scotch Whisky Association, Police Scotland, Trading Standards, The Wine & Spirit Trade Association and The Anti-Counterfeiting Group. Together, they will create a forum for distinct industry areas to share insight, intelligence and provide training and support for law enforcement agencies.
The group’s work will also help build a greater understanding among the wider public of the harms this trade causes, emphasising that counterfeiting is anything but a victimless crime.
“We are pleased to support the re-launch of the Scottish Anti-Illicit Trade Group, which marks an important moment in tackling this significant threat to businesses and consumers in Scotland,” Miles Rees, the IPO’s deputy director of enforcement, said.
“Counterfeit goods not only harm those using them, but also cause wider harms to society, our economy and communities. Government, industry and law enforcement all have a crucial role to play in working together to combat counterfeiting and piracy, and the group represents a vital forum, helping drive action together.”
Rachel Jones, newly appointed chair of the Scottish Anti-Illicit Trade Group and founder of Snapdragon, said: “Counterfeiting is not a victimless crime. It is the second largest source of criminal income in the world, after drugs. I’m very honoured to chair this group as we bring together key partners to protect Scotland’s heritage brands and consumers.”
Alan Park, director of legal affairs at the Scotch Whisky Association, highlighted the importance of protecting Scotland’s premium products.
“Food and drink products strongly associated with their origin, like Scotch Whisky, carry a significant reputation based on their quality, authenticity and generations of investment,” Park said.
“Those who attempt to take fraudulent advantage of that reputation will always face strong action, and the formation of this group is a significant step to help serve a strong message that this illegal activity won’t be tolerated.”
Members of the public can report suspected counterfeit goods to Police Scotland by calling 101 or anonymously through Crimestoppers.
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UK Easter spending shifts amid cost concerns - Vypr research
Chocolate purchasing intent for Easter is expected to slide due to factors like the ongoing cost of living crisis and growing concerns over sustainability while Easter-themed wrapping paper is expected to be in demand this year, states a recent report.
According to a UK consumer survey by product intelligence platform Vypr, 39 per cent of people are cutting back on chocolate eggs this year, while 24 per cent plan to spend less than £5 on Easter gifts.
While health concerns have led 29 per cent of consumers to scale back their Easter egg purchases, sustainability is a factor for many shoppers.
The desire for more eco-friendly options is evident for some, as 17 per cent of people are looking to choose gifts with less packaging, and another 17 per cent are prioritising items wrapped in less plastic.
Additionally, 15 per cent are opting to skip Easter altogether this year to avoid contributing to waste.
Despite these preferences, many shoppers are still planning to spend this Easter, although most say it’s going to be very low-key, with the majority (53 per cent) expecting to spend less than £10 in total, covering gifts, decorations, and entertaining.
Encouragingly for retailers, over a third (35 per cent) of consumers plan to spend between £10 and £50.
Chocolate eggs will still play a key part in these purchases, but for some, alternatives are gaining popularity. Cash gifts (10 per cent) and toys (9 per cent) are among the most popular choices.
Additionally, 10 per cent are looking for chocolate that isn’t egg-shaped, while 8 per cent will be buying Easter decorations.
Vypr noted that many supermarkets, convenience stores and wider retailers have expanded their range of Easter decorations this year, with 21 per cent of shoppers saying they have noticed the increased variety.
However, only 8 per cent report that this is likely to persuade them to purchase. Overall, 54 per cent of people do not decorate for Easter, and of those who do, 14 per cent plan to reuse last year’s decorations, while only 10 per cent will buy new ones.
Ben Davies, founder of Vypr, commented, “Retailers have plenty to consider when planning their 2025 Easter ranges.
"A quarter of shoppers are looking to gift-wrap Easter presents this year, making Easter-themed wrapping paper a clear opportunity to drive sales.
"Meanwhile, one in ten plan to buy Easter-themed clothing for children – which is something supermarkets could tap into to boost seasonal sales.
“Sustainability is also becoming a bigger priority for consumers, and demand for eco-friendly alternatives will only grow. This is a key area for NPD teams to explore, ensuring their ranges appeal to increasingly eco-conscious shoppers.”
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UK consumers cut spending as economic worries grow - KPMG
Majority of Brits feel that the economy is heading in the wrong direction, and this feeling is leading many to cut everyday spend, defer big ticket buying, and save more, a recent report has stated.
According to the latest quarterly Consumer Pulse survey from KPMG in the UK, three in five people say that the UK economy is worsening, leading even consumers feeling financially secure to cut back on spending.
The number of people feeling that the UK economy is worsening grew by fifteen percentage points in the last three months to 58 per cent.
But despite the perception of a downbeat economic picture, the majority (55 per cent) of people currently feel financially secure (which is just 2 percentage points lower than the previous quarter).
The research gauged the confidence of 3000 UK consumers and assessed their buying behaviour over the last quarter.
Those feeling insecure about their finances grew from 21 per cent to 24 per cent over the last three months, but within that only 15 per cent of people reported that their finances are such that they are having to actively cut discretionary spend to pay for essentials – with a further 2 per cent saying they are incurring debt to pay bills.
The growing negative economic perception is leading more consumers to take spending action than those who say their financial situation means they need to, with:
43 per cent saying they are reducing spend on everyday items.
36 per cent saying they are saving more as a contingency.
29 per cent saying they are deferring big ticket purchases.
19 per cent feeling less inclined to leave their current employment.
Reflecting upon the findings, Linda Ellett, head of consumer, retail and leisure for KPMG UK, said, “Our research continues to show that while only a minority of consumers feel financially insecure, the majority feel that the economy is heading in the wrong direction.
"And this nervousness about the economy is leading many, including some of those who are secure in their current personal financial circumstances, to cut everyday spend, defer big ticket buying, and save more.
“Some may be taking this action as they prepare for higher costs, such as a new mortgage deal or the higher cost of travel.
"But other cautious consumers are certainly preparing for the potential impact on them from what they believe to be a worsening economy. This week’s Spring Statement needs to give people the confidence in the longer-term UK economic outlook.”
Comparing consumer spending in the first quarter of 2025 to the results from the final quarter of 2024:
Eating out remains the most common target (38 per cent) for those cutting spend. Takeaway was second, with 34 per cent of consumers reporting less spend over the last three months. The number of people saying they are cutting back was 2 percentage points higher than the last survey.
The number of consumers reporting they cut clothing and footwear spend in the last three months rose 3 percentage points from the last survey to 32 per cent.
Cost cutting behaviour when shopping was once again evident, with:
Nearly a quarter of consumers (23 per cent) saying they shopped for promotional or discount goods more in the last three months.
Just over a fifth (22 per cent) of consumers saying they bought more own brand or value goods in the last three months.
A fifth (21 per cent) of consumers saying they used loyalty schemes more this quarter.
70 per cent of consumers said that price was a top purchasing driver for everyday items – rising 3 percentage points from the last survey.
Holiday spend was again the most common ‘big ticket’ quarterly spend, with 21 per cent of consumers reporting related spend in the last three months. 30 per cent of consumers say they will spend on a holiday in next three months.
45 per cent of consumers said they bought no ‘big ticket’ items in December, January and February. And 38 per cent said they won’t make any larger purchases in the coming three months.