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March 13, 2020

Tesco seeks to reassure consumers on food supplies 

Tesco, the UK's largest grocer, has issued an update on its food supply pipeline amid reports of coronavirus-linked panic-buying.

By Leonie Barrie

Tesco, the UK’s largest grocer, has sought to reassure consumers that its food supply pipeline is robust despite reports of coronavirus-linked panic-buying.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Speaking to BBC radio, Tesco chairman John Allan said that although it has recently seen heavy buying of certain products, it was not at a level that threatened the retailer’s supply chain.

“We, and I’m sure our competitors, are re-filling our supply chains as rapidly as ever we can,” he said.

Allan said it was unlikely Tesco, which has a 27.2% UK grocery market share, would experience anything more than “very short term, temporary” shortages of certain products.

However, reports of empty shelves in UK supermarkets persist.

News agency Reuters reported today (13 March) that an increasing number of supermarket shelves in London were empty on Friday as people rushed to buy pasta, toilet paper, flour and frozen food after the government ordered people that might potentially have coronavirus to isolate themselves.

By way of example, it said discounter Lidl in Hackney had no pasta, toilet paper, flour, tinned fish or oil on Thursday night, while Sainsbury’s in Charlton had neither pasta nor toilet paper on Friday. 

It said anecdotal evidence from across London indicates many people are hoarding basics.

Meanwhile, another UK ‘big four’ supermarket group, Morrisons, has said it is planning to pay its smaller suppliers within 48 hours to help them get through the outbreak.

Confirmed cases of coronavirus in the UK stood at 590 on Thursday (12 March) with the death toll rising to ten.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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