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.”
Freight-related crime cost the UK economy an estimated £680-700 million in 2023, when accounting for lost revenues, VAT, and insurance costs, revealed a recent report from the All-Party Parliamentary Group on Freight and Logistics.
The study, funded by the Road Haulage Association (RHA), documented 5,370 reported incidents of HGV and cargo crime across the UK last year, a 5 per cent increase on the previous year. Experts suggest that the actual figures could be significantly higher due to under-reporting. The direct value of stolen goods reached £68.3 million.
According to data from the National Vehicle Crime Intelligence Service (NaVCIS), major crime hotspots include Stafford with 138 offences, Thurrock with 103, and Warwick Services with 87. The East of England, Yorkshire and Humber, and South East regions experienced the highest concentration of incidents, with the West Midlands seeing incidents double in 2023 and Yorkshire/Humber recording a 65% increase since 2021.
Analysis reveals distinct seasonal patterns, with fourth-quarter criminal activities increasing by 56 per cent in 2022 and 26 per cent in 2023, coinciding with the Christmas retail period.
The report highlights significant infrastructure challenges, noting a national shortage of approximately 11,000 lorry parking spaces. Current facilities are operating at 83 per cent capacity nationwide, with utilisation exceeding 90 per cent in the South East, East Midlands, and East of England. The A14 Cambridge-Felixstowe route, serving Britain’s busiest port, has reached 100 per cent capacity for overnight parking.
Three-quarters of recorded freight crimes occurred in independent road parking areas or unsecured motorway service stations, with incidents at motorway services increasing by 59 per cent in 2023.
The APPG’s research indicates that rather than being opportunistic, these crimes are largely conducted by organised groups targeting high-volume routes near major ports. Small and medium-sized enterprises, which comprise 90 per cent of the sector, are particularly vulnerable to losses.
The impact on Britain’s supply chains is substantial, considering that road freight moves 89 per cent of all goods and 98 per cent of agricultural and food products. The cross-party group has proposed several measures, including the establishment of national secure parking standards, enhanced law enforcement resources, and reforms to planning frameworks to increase secure parking facilities.
The report forms part of a broader examination of supply chain security and follows the government’s allocation of £32.5 million in November 2022 for truck stop improvements, supplementing £20 million provided by National Highways earlier that year.
British Beekeepers’ Association (BBKA), which represents hobbyist beekeepers, has urged retailers to stock local honey, after a new research raised significant questions about the composition of blended honey samples imported to the UK and sold at supermarkets.
In a recent authenticity test, 96 per cent of samples of imported honey from supermarkets were found to be ‘atypical’ for honey, compared to 100 per cent of UK beekeeper samples that were deemed ‘typical’.
The Honey Authenticity Network UK (HAN UK) sent 30 honey samples for testing last month, with 24 out of the 25 jars of imported honey not meeting the required standards. All five of the samples sent from UK beekeepers passed the test, as well as one supermarket honey, which was also British honey.
The test was carried out at The Celvia research institute in Estonia, which has developed a DNA Metagenomic test in which the composition of samples is compared against a database of more than 500 genuine honeys.
Diane Drinkwater, chair of the British Beekeepers’ Association– which has a membership of nearly 30,000 beekeepers across England and Wales– said she was “disappointed, but not surprised” at the outcome of the results, adding:
“Our members are small, local producers of artisan honey. Whilst the amounts that they can produce each year will vary due to the seasonable nature of the product, our methods of extraction are unique, and each jar will have its own distinct flavour and texture,” Drinkwater commented.
“We will continue to champion the benefits of local honey in an era of increasing debate over the composition of imported honey sold in the UK”.
According to the International Trade Centre, the UK imported an average of 50,917 tonnes of honey in 2023, of which 39,405 tons were from China. Jars and bottles of honey can be bought off the shelf for as little as 69p, but often feature a blend of products from a number of different countries.
Honey adulteration can take many forms, with one of the most common methods being to bulk out honey with cheap syrups made from corn, rice and other crops.
These new results follow similar outcomes from imported honey samples in Europe, with 80 per cent of samples from Germany, 62 per cent of samples from Finland, and 100 per cent of samples from Austria failing the same test.
Lynne Ingram, BBKA Honey Ambassador and chair of the Honey Authenticity Network UK said: “It is disappointing that yet again, samples of cheap imported honeys in UK supermarkets have been found to be ‘atypical’ for genuine honey. All British honeys in the tests were found to be genuine.
“The lack of appropriate monitoring, testing and enforcement by UK government has led to the UK being flooded with cheap honey, much of it from China.
“Consumers wanting authentic honey are advised to be guided by price as very cheap honey is unlikely to be genuine; to read labels carefully and choose honeys that are not a blend. Ideally buy British honey.
“We would also call on more UK supermarkets to stock British honey.”
Wiltshire Police have arrested five people and seized more than £55,000 worth of illicit vapes, tobacco and alcohol following a series of warrants in the Broadgreen area of Swindon.
In a joint operation HMRC and Trading Standards, officers executed four warrants in Manchester Road at three stores and a property on Tuesday as part of the force’s ongoing Clear Hold Build work within Broadgreen.
The raids led to the seizure of thousands of pounds worth of illegal vapes which breached the legal capacity limit and “were for sale directly next to the counters.” Officers also seized illicit tobacco and alcohol.
Some vapes were advertised as containing more than 15,000 puffs – well in excess of the 600 puff limit for disposable vapes.
Five men were arrested on suspicion of breaching section 92 of the Trade Marks Act 1994. They have been taken into custody for questioning.
“This was a highly successful morning involving excellent multi-agency work,” Sergeant Winter, of the Swindon Central South Neighbourhood Team, said.
“Community intelligence is vital to enable us to conduct operations like this. If you have any concerns around activity going on in your community then please report it to us.”
As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.
Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.
These hubs provide shared spaces for consumers to access basic services, such as depositing and withdrawing cash, and are being embraced by businesses keen to support the use of cash, who have been struggling in recent years due to the flurry of bank closures across the UK.
With this in mind, Volumatic welcomes the increase in banking hubs and other facilities but recommends businesses go one step further to make things even easier.
“We have known for some time that more and more people are using cash again on a daily basis and so it’s great that access to cash is being protected by the FCA, something that we and others in the industry have been campaigning for, for a long time,” said Volumatic’s Sales & Marketing Director Mike Severs. “Both businesses and consumers need to have easy and local access to cash, and these new rules ensure cash usage continues to rise and will encourage more businesses to realise that cash is still an important and valid payment method.”
With time being of the essence for most businesses, making a journey to the nearest bank, banking hub or Post Office isn’t always possible on a daily basis, plus there is the obvious security risk to both the money and the individual taking it to consider.
Volumatic offers integration with the G4S CASH360 integration
Volumatic’s partnership with G4S, announced back in April 2024, means every business dealing in cash anywhere in the UK can have access to a fully managed solution. This will be especially relevant to those who currently have to walk or travel a distance to a bank or PO to deposit their cash.
Severs adds: “Although having more banking facilities is fantastic news, Volumatic can help businesses even more by bringing the bank to them through an investment in technology like the CCi that can offer integration with the G4S CASH360 solution. Together, we make daily cash processing faster, safer, and more secure and the combination of solutions will save businesses time and money for years to come, making it a truly worthwhile investment.“
Volumatic offers a range of cash handling solutions, with their most advanced device being the CounterCache intelligent (CCi). This all-in-one solution validates, counts and stores cash securely at POS, with UK banks currently processing over 2.5 million CCi pouches each year. When coupled with the upgraded CashView Enterprise cash management software and its suite of intelligent apps, the Volumatic CCi can offer a full end-to-end cash management solution – and now goes one step further.
It does this by providing web service integration with other third-party applications such as the CASH360 cash management system, provided by the foremost UK provider of cash security, G4S Cash Solutions (UK).
“Ultimately, only time will tell how successful the FCA’s new rules will prove. In the short amount of time the new legislation has been in place, the signs are already looking good, and coupled with the new technology we offer, it is a good thing for businesses and consumers alike in the ongoing fight for access to cash and more efficient cash processing,” concludes Severs.
Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.
The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.
Brands will also be able to draw on retailer and consumer feedback on the product and its performance thanks to Jisp’s significant resource in user communication, with over 1,000 retailers and more than 100,000 registered shoppers.
Brands can set the parameters of the NPD activity delivered through Jisp’s new service, selecting the duration of the campaign, the number of stores to launch into and even the geographic spread or demographic make-up of the stores included.
Product merchandising and promotional execution in store is monitored by the Jisp RGM team and full reporting is available to help brands better understand the success of their new product and shape future promotional strategy.
This robust data and insight set means that Jisp can not only provide a reliable view of what is selling in stores, but through its scanning technology can also indicate who is buying the product, when, where and why.
Alex Rimmer
“As part of our recent strategic review and restructure, we identified five key pillars of growth, or business units through which to drive new business,” said Alex Rimmer, director of marketing & communication at Jisp.
“Our existing core business already provided us the means to develop new services efficiently and through discussions with major brands, retailers, wholesalers and industry authorities, we identified a need for guaranteed implementation and execution of NPD in the convenience sector.”
Compliance is further assured using Jisp’s Scan & Save scanning technology along with a retailer reward scheme which pays stores for their participation and commitment to the process.
With 1,000 stores already registered with Jisp, the company is in talks with other businesses about opening the new NPD service to their stores given the benefits of securing NPD and reward for execution.
“This is a Win-Win for the sector,” added Alex Rimmer. “Brands can create a bespoke NPD launch campaign with a guarantee that their product will be instore, on shelf and correctly merchandised and promoted, receiving actionable data and insight to shape future strategy. Retailers secure access to NPD, support in merchandising it and reward for taking part, while customers find more local touch points where NPD from their favourite brands are available.”
With this new service promising to be such a valuable asset to the market, retailers and brands are encouraged to contact Jisp to capitalise on the opportunities.