Supermarket considers rationing small business buyers in event of No Deal Brexit

Supermarket considers rationing small business buyers in event of No Deal Brexit

A senior executive at a major food retailer has told the BBC it is considering introducing rationing.

It says it will prevent firms that have not made their own no-deal Brexit plan from using food retailers as wholesalers.

He told the BBC: “One potential problem is that businesses who are struggling with their supply chains effectively use ours.

“We would need to limit the amount restaurants or convenience stores, for example, that are short of stock could buy.

“We wouldn’t use the word rationing but that is effectively what it is. Limiting the volumes small businesses can purchase so that our retail customers get a chance to get what they need.”

This announcement comes shortly after government documents were leaked warning Britain of possible food shortages in the event of a no-deal Brexit.

There is reported concern amongst many UK shoppers regarding the prices and availability of products, with many retailers worrying that businesses will turn to supermarkets as they arguably have the most sophisticated supply logistics.

Will Broome, CEO and Founder of Ubamarket told Meat Management: “The extended Brexit deadline is unfortunately not ideal for food outlets as most retailers have already started accumulating stock for Christmas, which means warehouses are full of frozen, chilled and ambient goods.

“Also, the beginning of autumn sees the UK much more reliant on overseas fresh produce. If there are to be food shortages after we leave the European Union, then retailers need to think of viable and efficient ways to manage their stock. App technology may not be an alternative that retailers have previously thought of, however, by collecting data on consumers’ behaviours, it can track which products customers are most likely to buy, helping retailers to stocktake.”

Previous / Next posts...