Prime Minister Rishi Sunak has abandoned plans to ask supermarkets to impose a voluntary price cap on basic goods after a backlash from retailers, the Telegraph reported on Wednesday.
Last month, a Telegraph report on government plans to restrict food prices drew a sharp reaction from the industry representative, the British Retail Consortium (BRC), which argued such measures would not bring about any significant changes.
"The government has never been considering imposing price caps. We continue to engage with supermarkets about the best way to support consumers," a British government spokesperson said.
British ministers are pursuing other measures to deal with sky-rocketing food inflation, and officials had reassured retailers there would be no intervention in prices, the Telegraph said on Wednesday, citing sources.
Britain's competition regulator told supermarkets in late May it was looking at their earnings to identify which supply chains it needed to examine more closely as part of attempts to reduce food price inflation.
Retailers are invited to board Bestway’s Profit Express’ train as Bestway Wholesale launches its major Christmas campaign to its B2B customers across its nationwide depots, allowing retailers to access to its leading festive deals to drive shopper footfall against the backdrop of the theatre. The campaign will be live until Thursday 2 January 2025 giving customers the elevated, engaging and high impact theatre they have become famous for over the last three years.
In collaboration with key suppliers, the ‘Profit Express’ festive campaign delivers all the magic of theatre and festive fun, ensuring exceptional visibility and engagement for its expected 80,000 retailers shopping the Christmas campaign.
With a proven track record of delivering high-impact seasonal campaigns and aiming to build on last year’s success when the business achieved an average 158% volume uplift on SKUs during the Christmas campaign, Bestway is doubling down on the promotions to help ease the pressure on customers over this peak trading period – giving more back and strengthening its support for independent retailers with relevant offers for the festive period.
Inspired by the animated Christmas adventure film, Polar Express, retailers can enjoy a ride on the Bestway Profit Express steam engine, an unmissable and exciting journey to the North Pole. Along the way there will be several stops brimming with amazing festive deals where retailers can jump off to take advantage of the promotions and enjoy the festive cheer.
Each of the Profit Express carriages will be a real focus of the campaign, specially conceived to inspire customer excitement and interaction and display the promotional offers in depots nationwide. Large digital screens within depots will shine a light on special products, retailer promotions and supplier content.
Online, Bestway has taken the Profit Express train to the virtual digital realm giving its site a festive glow up of all the things it loves about Christmas. Its website www.bestwaywholesale.co.uk will be reflecting the festive spirit through a disruptive animated homepage and dedicated landing page with its 2024 seasons greetings of fabulous deals and promotions.With a train ride in the snow, Bestway will take its customers on a journey of key branded offers.
As a huge part of the trading calendar, Bestway aims to share the Christmas trading spirit with creatively themed marketing digital communications with a series of emails, WhatsApps and competitions to be won, ensuring its retailers are the first to hear about the promotions via targeted messages.
Kenton Burchell, Trading Director for Bestway Wholesale and Retail, says:
“We are really excited by this year’s Christmas campaign and confident we’re offering the very best deals in the market. We’ve saved some top deals of the year for the biggest shopping season to help our customers to increase sales and optimise their margin and profit at this time.
“Retailers can enjoy large-scale fun which is interactive and engaging directly with them in our depots and online on our website and apps. This year’s campaign is based on the story (now a much-loved film) about a young boy who embarks on a magical adventure to the North Pole on the Polar Express, while learning about the spirit of Christmas.
“It’s the perfect forum for suppliers to showcase their Christmas products, enhance brand visibility and drive additional sales during this key trading period.
Burchell concludes:
“We hope the campaign will encourage our retailers to make Bestway their number one choice of where to shop for their festive products this Christmas. By doing so, they will be rewarded – our whole aim is to help them make more possible for their business and their customers this Christmas”.
Imperial Brands has reported a robust performance for the fiscal year ending September 30, 2024, helped by strong cigarette prices and rise in its Next Generation Products (NGP) segment.
The group delivered a 4.6 per cent increase in tobacco and NGP net revenue on a constant currency basis, which reached £8.15 billion. This was driven by strong pricing in the tobacco segment, which offset a 4 per cent decline in volume, and a remarkable 26.4 per cent rise in NGP revenue.
Group adjusted operating profit also grew by 4.6 per cent at constant currency to £3.9bn, reflecting operational resilience and strategic execution.
“As we enter the final year of our current strategy, the investment we have made in consumer capabilities, cultural transformation and agile ways of working has supported another year of accelerated financial delivery and growing capital returns,” Stefan Bomhard, chief executive, said.
In tobacco, the group has delivered aggregate market share gains across its five priority markets, with four out of five markets in share growth. In the UK, the company faced a 50 basis point decline in market share, which it attributed to high excise duties and a rise in illicit tobacco trade.
However, the company said, despite these challenges, the UK remains “an important value contributor.” Tobacco and NGP net revenue in the UK accounted for 7 per cent of the group's total, supported by strategic price increases. The NGP sales benefited from the successful roll-out of new products including the 1,000-puff blu bar disposable and the rechargeable blu bar kit, the company added.
NGP has emerged as a growth driver, with Imperial for the first time reporting increased revenue in all three regions.
In the Europe region, the company saw strong growth in vape, led by the UK and supported by new products including the 1,000-puff blu bar disposable and the rechargeable blu bar kit. The NGP net revenue in Europe now represents around 8 per cent of tobacco and NGP net revenue.
CEO Stefan Bomhard expressed confidence in delivering the final year of the group's current strategy, highlighting the transformation into a strong challenger in the tobacco and NGP sectors.
“Our operational delivery coupled with consistently strong cash flow generation has supported enhanced shareholder returns with increases to both our ordinary dividend and share buyback. We are on track to deliver five-year capital returns of c. £10bn, representing 67 per cent of our market capitalisation in January 2021 when we launched our strategy,” he said.
In the coming year, the company expects to deliver low single-digit tobacco and NGP net revenue growth and to grow the group adjusted operating profit close to the middle of our mid-single digit range, driven by continued profit growth from the combustible tobacco business and a further reduction in operating losses in the NGP portfolio.
Britain's biggest retailers have written to finance minister Rachel Reeves to warn her that last month's budget will make both higher prices and job losses a certainty and dent investment.
The letter, coordinated by the British Retail Consortium trade body and signed by 79 retail bosses, including those at Tesco, Marks & Spencer, Sainsbury's, Next, Asda, Morrisons, Kingfisher, Amazon UK and Boots, called for a meeting with Reeves to discuss their concerns and work on a solution.
The Labour government's October 30 budget statement raised employers' National Insurance contributions by 1.2 percentage points to 15 per cent from April next year, and also lowered the threshold for when firms start paying to £5,000 from £9,100 per year. It also raised the minimum wage for most adults by 6.7 per cent from April.
The letter said the UK retail industry, which has three million direct jobs and 2.7 million more in its supply chain, was facing a rise of £7 billion in annual costs from 2025 when higher business rates and the impact of new packaging levies are also taken into account.
"It will not be possible to absorb such significant cost increases over such a short time scale. The effect will be to increase inflation, slow pay growth, cause shop closures, and reduce jobs, especially at the entry level," it said.
The retailers want the government to phase the introduction of the new lower earnings threshold for National Insurance, delay the introduction of packaging levies, and revisit and bring forward proposed changes to business rates.
On Saturday, prime minister Keir Starmer said he would defend decisions taken in the budget "all day long".
FMCG wholesaler and international distributor Pricecheck has reported 16 per cent growth in turnover to £151.7 million and a rise in operating profit margins from 1.42 per cent to 2.77 per cent in the year ended April 2024.
According to industry reports, the Sheffield-based wholesaler and international distributor is attributing the margin increase to strong revenue growth combined with cost control measures and reduced bad debt.
Mark Lythe, joint managing director at Pricecheck, commented: “We have continued to grow at a fast pace in the new financial year, with the team expected to achieve revenue growth of at least 20 per cent for year ending April 2025. Operating margins are also improving as we start to realise the benefits of our investment in infrastructure, people and technology.
“The business has shown great resilience during the challenges of the last five years. Revenue growth during this period has averaged 14 per cent per annum and we have firmly established ourselves as a trusted distribution partner for a growing portfolio of FMCG brands.
“We couldn’t achieve this growth without continued focus and determination from our team, and gaining independent accreditation from Great Place to Work in August 2024 further cemented our dedication to building a culture which enables, supports and celebrates our people.
“Overall, we’re very confident about the future prospects for Pricecheck and we’re looking forward to a busy and exciting year ahead.”
Pricecheck offers a range of over 8,000 branded products to customers in the UK and to more than 100 countries globally. It was established in 1978 and is a second-generation, family-owned business, now run by Mark Lythe and Debbie Harrison. The business operates from office and warehouse facilities in South Yorkshire, with about 350 staff. It currently exports to more than 100 countries.
Harrison wrote on social media, "As our revenue continues to grow at an average of 14 per cent per annum, we're excited for the journey that lies ahead for Pricecheck and our team."
This comes a few days after Pricecheck got listed in the J.P. Morgan Private Bank’s Top 200 Women-Powered Businesses Report. This report highlights over 14,550 women-powered, high-growth British businesses, all founded or led by women, and ranks the top 200 companies based on growth in sales and headcount.
Harrison wrote, "It's no secret that we're incredibly proud of Pricecheck's successes and growth over recent years, but we also know that we're in a unique position of having a 30 per cent female leadership team, something unique in our sector. This recognition is for all the talented women who shape Pricecheck every day. As a team, we’re committed to supporting gender balance, celebrating achievements, and fostering opportunities for women to thrive."
In-store food sales will see muted year-on-year growth over the festive period, states a new report, claiming that this year, Christmas is set to be a subdued affair for grocers as inflation continues to bite.
According to UK Christmas Grocery Forecast released by consulting firm AlixPartners, in-store sales this Christmas are expected to increase by 2.5 per cent in value terms. However, when adjusted for inflation, this figure becomes a 0.7 per cent decrease.
The forecast, which is based on AlixPartners’ analysis of UK ONS retail sales and consumer confidence data, mirrors findings from the AlixPartners 2025 Global Consumer Outlook, which recently surveyed 2,000 UK consumers on their intended spending for this holiday period. The outlook reveals that only 13 per cent of British consumers are planning to spend more on food this Christmas than last Christmas. 55 per cent intend to spend the same amount as last year, while 21 per cent of British consumers intend to spend less.
Matt Clark, Head of EMEA Retail at AlixPartners, commented, “With the legacy of inflation continuing to bite and consumer confidence holding back spending, this Christmas is set to be a subdued affair for grocers. Last month’s Budget brought difficult news, with many preparing to take a significant financial hit as a result of the National Living Wage and National Insurance Contribution increases. A good ‘Golden Quarter’ has therefore become more important than ever.
“There is some hope on the horizon for the industry. The increase in the National Living Wage should create a small window of optimism for lower-paid customers, during which those consumers will feel more able to spend.
"This is an opportunity that grocers should grab, as it is unlikely to last given likely price increases as costs are passed on. Those businesses that can move fast and decisively may yet be able to retain or grow their share of wallet over the festive period.
“The increased pressures on profits means it is unlikely that we will see a reduction in turnaround or transformation activity as we move into next year. In this vein, agility remains vital, with all businesses needing to be prepared to make tough decisions and to adapt and innovate at pace in the weeks and months ahead.”