Skip to content
Search
AI Powered
Latest Stories

Supermarkets under fire over 'race to bottom' vegetable price war

Supermarkets under fire over 'race to bottom' vegetable price war

iStock image

Farmers have slammed supermarkets over their practice of slashing the cost of vegetables to lure Christmas shoppers, saying that heavy discounting can impact consumer expectations about the real value of British produce.

Around Christmas, most supermarket giants, even upmarket chains Waitrose and Marks & Spencer, cut the price of festive basics by at least half at their busiest time of year.


The deep discounts come as the cost of producing homegrown vegetables has been pushed up with growers “already under the cosh” according to the National Farmers’ Union (NFU). Workforce availability, extreme weather and rising employment costs – compounded by recent national insurance and minimum wage increases – have taken their toll on the sector.

A spokesperson for the NFU told The Guardian, “While promotional activity can have positive impacts for growers to help drive sales volumes and attract new shoppers, growers have long held concerns about the impact heavy discounting can have on consumer expectations about the real value of British produce. Growers must also be reassured that this pricing strategy is not funded by unsustainable farmgate prices.”

Jack Ward, the chief executive of the British Growers Association, said: “Is that really a cause for celebration? We are giving people a false impression of what’s involved in improving food.

“People ask ‘if I can buy it for 15p at Christmas why is it 65p the rest of the year?’ It completely devalues what are superfoods compared to a lot of other things consumed in Christmas week. There’s no denying that consumers like this kind of deep discounting but they have got to understand it comes at a cost.”

While Ward admits that retailers take the profit hit on discounting the vegetables over the festive season, he says the growers will ultimately pay in lower prices throughout the year.

“Let’s not delude ourselves, the [cost of the] promotions are factored in somewhere along the way over the 12 months.”

Some retailers agreed the discounting was not good for the industry.

One supermarket insider told The Guardian that the discount frenzy devalued the image of vegetables and that it is a "race to the bottom and no one is really benefiting. Anyone selling a bag of carrots for 17p is making a thumping loss.”

More for you

Sugro UK partners with Dunelm for Christmas charity drive

Sugro UK partners with Dunelm for Christmas charity drive

Sugro UK, a member-owned buying and marketing group with over 90 members and a combined turnover of over £2.5 billion, has joined forces with its suppliers to support Dunelm’s “Delivering Joy” charity campaign.

Dunelm’s “Delivering Joy” initiative involves Christmas trees being placed within all UK Dunelm stores, decorated with tags containing gift requests from local schools, care homes, refuges and charities with which Dunelm has partnered.

Keep ReadingShow less
'Sales of fresh meat, poultry soar as scratch cooking returns'
Photo by Matthew Horwood/Getty Images
Getty Images

'Sales of fresh meat, poultry soar as scratch cooking returns'

Sales of fresh meat and poultry have soared as shoppers cut back on takeaways and eating out – but they are increasingly shunning so-called ‘meat-free’ options.

NIQ data released today (14) shows that over the last 12 months, British consumers did more scratch cooking, with sales of fresh meat (+£481.3m), fresh fruit (+£463.5m), fresh vegetables (+£374m), fresh salad (+£285.3m) and fresh poultry (+£247.6m) all among the top 10 fastest growing categories.

Keep ReadingShow less
Special Christmas Lotto and Euromillions event draws to boost retailer sales

Special Christmas Lotto and Euromillions event draws to boost retailer sales

National Lottery operator Allwyn is calling on retailers to make the most of its special festive draws and Scratchcards over Christmas to boost their National Lottery sales.

Allwyn’s new range of Christmas Scratchcards, which is bespoke for 2024, features two firsts for The National Lottery – a foldable £2 Christmas card with top prizes of £50,000, and a £1 gift tag Scratchcard with top prizes of £10,000.

Keep ReadingShow less
Christmas arrives early at SPAR Greenock

Christmas arrives early at SPAR Greenock

SPAR Scotland celebrated the return of its national brand campaign, BIG Deals of Christmas, with a Christmas party which took place at SPAR Greenock on Friday 6th December.

Launched in SPAR Scotland stores in October, the campaign is supported by a national media plan, bringing the deals to life, including TV advertising on STV, in-store POS displays, digital screen promotion, social media support, and an E-Blast collaboration with the Scottish FA. A SPAR lorry specially wrapped to promote the campaign is travelling all over Scotland.

Keep ReadingShow less
"Scrooge is alive and kicking at Reach" – the Fed
iStock

"Scrooge is alive and kicking at Reach" – the Fed

Independent retailers have condemned Reach for using the festive period to try to sneak through cover price rises on its national, daily and weekly newspapers accompanied by a widespread cut in terms.

“Such penny pinching at a time that is usually associated with giving is despicable. Where is the Christmas and New Year cheer?" asked Mo Razzaq, the National President of the Federation of Independent Retailers (the Fed).

Keep ReadingShow less