Retailers worry about Christmas as fuel shortage further disrupts deliveries, stock
Fuel pumps are covered with plastic bags as a Texaco petrol station waits for a delivery on September 27, 2021 in Northwich, United Kingdom. (Photo by Christopher Furlong/Getty Images)
Even as the petrol and diesel shortage has eased and the situation has improved, retailers are beginning to worry about the shape of the all-important Christmas trading this year, with labour shortages continuing to threaten supply chains for everything from pork, petrol and poultry to medicines and milk.
While the forecourt stores bore the brunt of the fuel shortage, other retailers were also impacted nonetheless, with deliveries to the stores disrupted and availability of the stock at cash carries, already strained due to the lorry driver shortage, further affected.
“We are really affected in this shortage,” Imtiyaz Mamode, of Premier Gosport in Hampshire, said. “The suppliers are not coming on time, wholesalers are not coming on time, we are not getting much of fresh products, and even the deliveries are intermittent as well.”
Imtiyaz Mamode
Mamode added that they sometimes missed deliveries altogether as suppliers were lacking of fuel and didn’t want to risk it.
“One or two suppliers are based in London, so while driving from London to here they have to think whether they got enough fuel to go back and does it worth doing that or not. Because they have to wait for several hours in the queue,” he explained.
Nico Ali, who runs the Premier Top Shop store in Scotch Estate, Jarrow, says the situation is equally grim at cash and carries.
“You can't get most of the lines in the cash and carry. If I'm going to Booker in the morning, I'll have to do three or more cash and carries, like Bestway or United, to get supplies in. The thing is its very difficult. The shelves are bit empty in the shop,” he said.
Forecourt stores, meanwhile, have seen sales going down considerably in the two weeks of panic-buying fuel, as the long queues meant shoppers only wanted to get their fuel and go.
“Some of our members are talking about sales down between 20-30 per cent in convenience stores. Some even more,” said Gordon Balmer, executive director of Petrol Retailers Association (PRA) which represents independent fuel retailers who now account for 65 per cent of all UK forecourts.
“Motorists want to get into a forecourt, fill up and drive off. If they sit there any longer than they need to, they'll start to get some other people in the queue. And that means that they're not going to the store to buy your items,” he told Asian Trader.
Motorists queue outside a fuel filling station in Leyton, east London on September 29, 2021. (Photo by TOLGA AKMEN/AFP via Getty Images)
David Wyatt, owner of Shell/Costcutter fuel garage and convenience store on the A264 between Crawley and East Grinstead, West Sussex, concurred. Good Covid procedures meant the store usually attracted a lot of customers, but he said those customers were not coming in because they have so many cars on the forecourt.
Spectre of abuse
As tempers flared in the queues, petrol station staff sometimes found themselves at the receiving end of verbal and physical abuse, something we have seen earlier when retailers had to ensure Covid-appropriate behavior during the pandemic lockdowns.
“We have had some unfortunate incidents when people have obviously been trying to control the traffic queue and trying to make sure that fuel is purchased in an orderly manner. There have been some issues of unfortunate racial abuse, as well as threats of violence,” Balmer said.
Wyatt said people mostly co-operated with their efforts to maintain the flow of traffic. “But, you will always get the odd one person that wasn't happy to be told that he was going to be restricted or whatever,” he added. “I've had no real issues, a bit of abuse, but nothing really worth talking about.”
“Most people have been appreciated that we're taking the time to manage the queues, and restricting the sale so more people get it.”
David Wyatt
Wyatt, like many of his fellow retailers, used rationing to keep the petrol station open. “Whilst rationing we find that we can trade for a couple of days and we're out of stock for a day, then we trade for couple of days and out of stock for a day. It's not just us; surrounding garages aren't getting the supply they should have. So when whatever side gets fuel, they then get swamped, obviously,” he said.
And, even after two weeks of panic buying, he didn’t find things returning to normal. “I mean we're open today (Oct. 5) and we are still busier than we would normally be and there's still sites around us without fuel,” he said. “But it's not as bad as it was two weeks ago, so I would say its getting better.”
Balmer explained that the shortage has always been acute in London and the South East when compared to other areas because of the density of vehicles. “There's less fuel stations to serve more vehicles in the London area than other parts of the country,” he noted.
‘Get your stuff in now for Christmas’
Shortfalls in drivers and foreign workers have raised fears of more general shortages, with suppliers, wholesalers and supermarkets all struggling to stock up before Christmas.
Ali informs us that the wholesalers have already given the signal out to whomever Christmas buying: ‘There's already challenges, get your stuff in now for this Christmas, we're gonna struggle.’
Ali who gave out presents and hampers to the vulnerable people living in his estate and children coming into the store last Christmas, says that some products are already missing when he tried to get a few things for this year.
Nico Ali
“From my point of view, I think there is going to be certain lines we will not be able to get. Because when you go to that cash and carry to see if that stuff is there, if you're not there, and they had one, you will miss out. When we come in the morning, stock might be not there, but it might come in afternoon. To be honest, I think it's affecting everybody,” he says.
Wyatt agrees to that and suggests: “When you can buy something, get it. Don't assume you're going to get it next week, if that makes sense,” adding that it's inevitable that this is the ‘new norm’.
“As a country with Brexit, Covid and all the things that have gone on, I think this is more of the norm. We live in a country where a lot of it is last minute, food coming in, everything's on a tight schedule. So when something interrupts it, this is the end result,” he notes.
Balmer says that the issue is rather structural, concerning the logistics industry. “They need to quite simply get more lorry drivers.”
Britain is short of some 100,000 lorry drivers, according to the industry body Road Haulage Association, as a result of workers leaving the industry, Brexit and the pandemic, which put a stop to driver training and testing for about a year.
Ministers have repeatedly denied that the fuel crisis has anything to do with Brexit and have cast the trucker shortage as a global problem, though other European neighbours have not experienced queues at gas stations.
Polish lorry drivers rest and talk at Ashford International Truck Stop on December 22, 2020 in Ashford, United Kingdom. (Photo by Chris J Ratcliffe/Getty Images)
The government has made a U-turn on its tougher post-Brexit immigration policy, relaxing curbs to give short-term visas to 5,000 foreign lorry drivers and 5,500 poultry workers to help plug staffing gaps.
But in the week since ministers introduced the scheme to help fill vacancies, a meagre 27 applicants from the EU have come forward to drive tankers in the UK, even when 300 visas are earmarked for immediate issuance.
Labour shortages have raised fears of a shortage of turkeys for Christmas. Pig farmers are saying that the lack of butchers and abattoir workers - many from overseas - could see up to 120,000 animals slaughtered and incinerated rather than going into the food chain.
However, Prime Minister Boris Johnson is resisting any further easing, saying he wants to see a ‘high-wage, high-skill economy’ rather than mass immigration which would drive down salaries.
A silver lining
One thing that Mamode finds consolation in is the fact that customers now understand the issue of stock availability as they have now faced the same situation as well.
“Now the customer knows that it's not us who have been out of stock but all the supermarkets and other retail shops have also been facing this problem,” he says.
Pete Patel, who runs six stores, shares the sentiment. “When you go to supermarkets, they're also struggling, so everyone's accepted this as a general issue.” Consequently, no one's is panic buying in the stores, he adds.
Mamode, in fact, thinks the press has a lot to answer for the run on the pumps after supply issues initially prompted the temporary closure of a small number of retailers.
Shell/Costcutter garage and convenience store, Snow Hill, Crawley
“There's no shortage of anything. The only problem is the media is always doing something and trying to convince the audience that these are the shortages,” he asserts. “So when they are coming to know that there is a shortage, customers are trying to buy in bulk and basically they are suffering in the long run.”
He notes that the panic buying is making the shortage of a product and if customers buy the product in a quantity they used to buy there won't be any sort of shortage at all.
Pete tells us that he has seen a silver lining amid the fuel shortage: a return to shopping locally. “In fact, the fuel shortage has actually helped me with sales in the last week because people are not driving anywhere.”
Premier Foods reported robust sales of its host of well-known brands during the Christmas period and is now forecasting that its annual profit will come in at the upper end of analysts’ expectations.
During its third quarter to 28 December, the group saw its total sales grow by 3.1 per cent, driven by branded sales that increased by 4.6 per cent. After recent investments in innovation and promotional pricing, its performance was driven by volume growth, which was 7 per cent for its branded lines.
The group’s Grocery division saw overall sales increase by 2.2 per cent after branded growth of 3.5 per cent offset a 9.3 per cent fall in non-branded.
Premier Foods noted that its premium Ambrosia Deluxe and Bisto Best ranges performed well as consumers traded up over the Christmas period, while its Loyd Grossman cooking sauces delivered sales growth after benefitting from the roll-out of new lines.
The group’s recently acquired brands grew double-digit, helped by new product launches by The Spice Tailor and FUEL10K.
Meanwhile, Premier Foods said that non-branded sales had declined mainly due to the exit of some lower-margin contracts.
The group’s Sweet Treats division reported strong volume-led branded revenue growth of 8.9 per cent , with both its Mr Kipling and Cadbury ranges said to have grown faster than the market. Non-branded Sweet Treats sales were in line with the same period a year ago.
Premier Foods overseas businesses enjoyed another strong quarter, with sales climbing 29 per cent after its brands saw double-digit growth in all target regions.
“We are pleased to report another very good quarter of volume-led branded revenue growth, accompanied by further market share gains, as our branded growth model continues to deliver well for us,” said Chief Executive Alex Whitehouse.
He noted that the business had benefitted from consumers trading up and treating themselves in recent months after cost of living pressures started to ease for some people.
Whitehouse concluded, “Having delivered very good volume led, branded revenue growth in our key third quarter, we’re now guiding trading profit to the upper end of expectations for this financial year.
As we look to the rest of FY24-25 and to the medium term, we expect to deliver further progress as we continue to execute against our five pillar growth strategy.”
The Compleat Food Group, one of the UK’s leading food manufacturers, has achieved a significant milestone in its sustainability journey by removing plastic trays from its pork pie packaging.
The initiative, which spans both branded and own-label products, is set to reduce plastic use by 110 tonnes annually. The group produces an estimated 200 million pork pies annually under its own label and through its portfolio of brands, which include Pork Farms, Wall’s Pastry, and Wrights.
The rollout is part of the company’s aim to reduce its environmental impact while maintaining food quality and safety. Following a substantial investment in automation equipment at its Tottle site, the company implemented a new, innovative trayless packaging process, which eliminates 75 per cent of the plastic previously used in high-volume pork pie packs. This is expected to result in a carbon saving of approximately 430 tonnes of CO2 equivalent each year.
“Our move to trayless packaging for pork pies is a prime example of how innovation and investment can drive meaningful sustainability improvements. While the automation required careful consideration of speed and efficiency, the result is a significant reduction in plastic use without compromising on product quality or freshness,” David Moore, head of ESG at The Compleat Food Group, said.
“This marks a huge step forward in our efforts to reduce plastic packaging across our portfolio, supporting our wider purpose to make food to feel good, taste good and do good.”
In addition to the trayless packaging initiative, The Compleat Food Group is driving innovation in flexible films, a material that remains a key challenge for the food industry due to the lack of collection and recycling infrastructure. The group is transitioning to mono-material films for specific product packaging, such as chorizo. These films can be recycled through supermarket collection points and are expected to be kerbside recyclable from 2027.
A signatory of WRAP’s UK Plastics Pact, The Compleat Food Group said it is committed to addressing the challenges of packaging by removing unnecessary materials, increasing the use of recycled content, and improving recyclability. The company uses over 4,000 tonnes of plastic annually and has a clear strategy to reduce this figure through targeted innovations, while maintaining product quality and freshness.
The company’s broader ESG goals include exploring new packaging solutions, trialling recyclable alternatives, and embedding sustainability across its operations. Recent achievements include replacing rPET plastic trays with recyclable paper-based board in its Squeaky Bean range, cutting plastic use in that range by 82 per cent.
Businesses are facing a sharp rise of "140 per cent" in property costs due to the government's decision to cut relief for the retail, hospitality and leisure sector from 75 per cent to 40 per cent, property consultancy Colliers has warned.
The government’s decision to reduce business rates relief from 75 per cent to 40 per cent will see thousands of shops, restaurants, pubs, gyms, and nightclubs grappling with bills surging by over 140 per cent from the beginning of April.
This significant increase is expected to place further strain on an already pressured high street.
John Webber, head of business rates at Colliers, cautioned that the reforms could exacerbate challenges for retailers.
“The Labour government’s business rates policies will soon put even further pressure on the high street as bills for the new rating year start to drop through the letterbox next month.
“Labour said if it came into power it would save the high street. This slashing of reliefs will sadly do just the opposite as we’ll sadly see when the bills drop through the letterbox in the month ahead," The Times quoted Webber as saying.
The Conservative government introduced the retail, hospitality and leisure relief scheme in November 2022 to cushion the sector from high rates bills.
It provided eligible properties with 75 per cent business rates relief up to a cap of £110,000 per business. Rachel Reeves announced in October that this would be reduced to 40 per cent.
Colliers has calculated that this will mean that retailers benefiting from the relief will find their business rates bills increasing in April on average from £3,751 a year to £9,003.
Restaurants will face a rise on average from £5,563 to £13,351 a year. The rates bill for the average pub will also go up from £4,017 to £9,642 a year.
The business rates system, forecast to raise £26 billion in England this year, is a property tax charged on most commercial properties, including shops, offices, warehouses and factories.
Labour’s manifesto pledged to replace the business rates system by raising the “same revenue but in a fairer way” to “level the playing field” between the high street and huge online companies and to tackle the scourge of empty properties.
A Treasury spokesman said, “Without our action, business rates relief for retail, hospitality and leisure would have ended completely in April this year.
"Instead, we are protecting one in three business properties from paying business rates, extending 40 per cent relief for 250,000 properties in retail, hospitality and leisure and introducing a new permanently lower business rate in 2026, while more than half of employers will either see a cut or no change in their National Insurance bills.”
Edmonton city council is discussing what it would take to ban knives from being sold in convenience stores, state recent reports.
A key issue during the community and public services committee held on Monday (20) was wading through the potential legal ramifications of defining what a knife is and whether some businesses owners may try to find loopholes to be able to sell knives.
The bylaw amendments would not apply to the sale of "basic cutlery."
"I'd be interested in sort of redefining the definition of knife, rather than defining basic cutlery," said Coun. Jo-Anne Wright during Monday's meeting.
Council previously voted to create a new convenience store business licence category, but implementing the changes can only happen when a licence is up for renewal. Full implementation of the bylaw could take years.
Amendments to the bylaw were heard in Monday's meeting.
The bylaw also sets out new $2,000 fines if knives are sold at a convenience store.
The working definition of knife put forward as an amendment is "a tool composed of at least one blade fastened to a handle, where the blade may be fixed to the handle, or may open through a deployment mechanism, including automatically by gravity or centrifugal force or by hand pressure applied to any part of the tool."
"To me, it's very cut and dry when you look at the definition of knife, and so I wonder if we're also overthinking this a little bit," Coun. Erin Rutherford said during the meeting.
"We knew that it was problematic and challenging in and of itself, both coming up with a definition of convenience store and coming up with a definition of knife."
The matter of knives being readily sold in convenience stores was brought into the spotlight last April after community members from the central neighbourhood of Alberta Avenue came forward with their safety concerns about how easy it was to purchase one.
Edmonton police seized 79 prohibited weapons and illicit tobacco from a central Edmonton convenience store in December, according to a news release on Monday.
On Dec. 17, 2024, EPS' Community Safety Teams, previously known as Healthy Streets Operations Centre, executed a search warrant at a convenience store located at 97th Street and 107th Avenue that was known to be selling prohibited knives and contraband cigarettes.
There were 71 prohibited knives seized, which included a variety of butterfly and spring-assisted knives.
In addition, eight prohibited brass knuckles with spring-assisted knives concealed within, known as "trench knives" were found.
With just 70 days left to go until the government’s new Simpler Recycling reforms are implemented, most businesses are not prepared for the changes in the rule, claims a leading business waste management service.
Although the UK's overall recycling rate has seen a significant rise, reaching 44 per cent in 2015 compared to just 17 per cent in 2008, progress has plateaued in recent years, with indications that the rate may now be declining.
Department for Environment, Food & Rural Affairs (DEFRA) new initiative Simpler Recycling reform aims to simplify recycling processes, reduce landfill waste, and tackle illegal waste activities, creating a more sustainable and environmentally conscious society through improved recycling efforts.
According to the Simpler Recycling reform mandate released by DEFRA, by 31 March 2025, businesses and relevant non-domestic premises in England will need to arrange for the collection of the core recyclable waste streams, with the exception of garden waste (glass, metal, plastic, paper and card, and food waste).
The new Simpler Recycling rules affect any business with 10 or more full-time employees. The rules apply to businesses regardless of how many employees are on-site at once.
For example, if you have two locations with five full-time employees at each, you must still comply with the Simpler Recycling regulations, as you’ll have 10 employees in total.
Businesses that fit under this category must arrange separate collections of food waste, paper and cardboard (can be combined), and other dry recycling (glass, plastic, and metals, which can be combined).
It means businesses can no longer throw any of these materials away with general waste.
Micro-firms (businesses with fewer than 10 full-time equivalent employees) will be temporarily exempt from this requirement. They will have until 31 March 2027 to arrange for recycling of core recyclable waste streams.
The new default requirement for most households and workplaces will be four waste containers (including bags, bins or stackable boxes) for:
residual (non-recyclable) waste
food waste (mixed with garden waste if appropriate)
paper and card
all other dry recyclable materials (plastic, metal and glass)
This is the government’s maximum default requirement and is not expected to increase in the future. However, councils and other waste collectors will still have the flexibility to make the best choices to suit local need, DEFRA states.
Using commercial waste collection services and licensed waste carriers should ensure compliance with the new plans.
Businesses can use separate bins for each recycling stream or use dry mixed recycling bins to combine plastic and metals for ease (such as food packaging). Paper and card must be collected separately from other dry recyclables.
What can businesses do to transition and keep costs low?
Business Waste sent out communications to over 15,000 customers to make them aware of Defra's new Simpler Recycling reforms and response data suggests only 1 per cent are aware of the new laws.
Mark Hall, waste management expert at Business Waste, shares his thoughts, “It’s a big win for the environment and it aligns well with the government’s sustainability goals.
"We’re geared up to help businesses comply with these regulations, ensuring a smoother transition to greener waste management practices.
"It’s important to implement any changes your business needs in plenty of time. This way you’ll be able to spot and fix any teething issues as they arise, and before the rules are enforced.
"A great place to start is to conduct a waste audit to understand how much waste your business produces, what types of waste you generate, and what bins and collections you need. Business Waste offers a free waste management audit that can help.
"Following on from this, you can then look to create a waste management plan that will help ensure your business manages its commercial waste safely, appropriately, and efficiently.
"All staff must understand the new laws and what changes are being made in the business to follow these. Educate staff about the waste you generate and its impact on the environment, so they understand the reasons behind the changes.
"Set clear guidance to follow and provide instructions or labelling that helps staff segregate and dispose of waste correctly.
"Reducing waste is cheaper and better for the environment than removing it. Look for ways your business could reduce its waste at the source. Rethink packaging, switch from single-use products to reusable options, or evaluate your inventory management.
"A waste broker can help you understand your waste needs, arrange any collection and disposal services, and work with their suppliers to find you the best price.
"Using a waste broker should ensure you meet all the requirements of Simpler Recycling and removes a lot of the admin and time spent arranging waste collection.
"Business Waste can also help companies with their transition to the new rules by providing millions of free bins to customers. There are no delivery fees or hire charges, you only pay for the collection costs.
"Any business using our services can access a wide range of free bins to separate their waste."