Rapidly increasing fuel cost will eventually be passed on to consumers through hikes in food prices, Federation of Wholesale Distributors (FWD) chief has said.
Surging fuel prices are piling on top of other pressures on shops including labour shortages, retailers said.
With fuel prices hitting record levels, the trade body for UK wholesalers has told the BBC that its members will pass on increased transportation costs to their food shops and restaurant customers, who will in turn pass on those costs to consumers.
"Food price inflation is already happening, but this is going to make it worse, because there'll be charges passed on to customers and then obviously to end users as well," said James Bielby, chief executive of FWD.
"So, people buying food and drink in shops, when they're eating out, will be paying more because the cost of distributing those goods to the outlet has gone up so much."
Fuel prices are rising amid fears of a global economic shock from Russia's invasion of Ukraine. Oil touched 14-year-highest level this week before slipping slightly.
"If you're distributing goods around the network, fuel costs will be 25 percent to 30 percent of your distribution costs,” Bielby continued.
"Those wholesalers who are buying on what's known as the spot market are seeing their costs go up by as much as 50 percent per litre. So it's a huge impact, and that then leads to a surcharge on customers."
He said some larger businesses who had hedged, or bought their fuel in advance, weren't yet as affected, but were likely to feel the impact when current contracts came to an end.
"When you're thinking about all of the other pressures in the supply chain which have been going on for the last two years and beyond, it makes it really, really difficult.
"And that ultimately means that consumers are having to spend more on food and drink at a time when their energy bills are going up, at a time when the cost of living is going up hugely."
Bielby said that if prices remained high, operators which bought fuel on the spot would also choose to fill up tanks only partially, for cashflow reasons. This could mean some harder-to-reach areas would be supplied less frequently.
"So if they get deliveries every other day, that might go to once a week. This would mean the choice and range of products they get will go down.
"That would be typically be areas at the end of the distribution line, so rural communities or coastal towns," he said.
Many wholesalers had already been bracing for added costs from April, when they would no longer be allowed to use cheaper red diesel to run their refrigeration units or freezers, he added.
Marks & Spencer has finally been given the green light to knock down its the 1920s art deco Oxford Street store.
After a three-year legal battle, housing secretary, Angela Rayner, ruled on Thursday (5) that the plans of demolition could go ahead.
The retailer wants to rebuild the store as a nine-storey building housing a retail space, cafe, gym and office.
Stuart Machin, Marks & Spencer’s chief executive, wrote on X, “I am delighted that, after three unnecessary years of delays, obfuscation and political posturing at its worst under the previous Government, our plans for Marble Arch – the only retail-led regeneration proposal on Oxford Street – have finally been approved.
"We can now get on with the job of helping to rejuvenate the UK’s premier shopping street through a flagship M&S store and office space which will support 2,000 jobs and act as a global standard-bearer for sustainability.
"At M&S, we share the Government’s ambition to breathe life back into our cities and towns and are pleased to see they are serious about getting Britain building and growing. We will now move as fast as we can."
M&S won planning permission to demolish the 1920s art deco store , named Orchard House, from Westminster City Council in 2021. But it ran into opposition — on grounds of both sustainability and heritage — from the conservation group Save Britain’s Heritage, architects, engineers and celebrities.
Former minister Michael Gove maintained that the building, which sits in the heart of central London’s shopping district, should be retained and refurbished rather than bulldozed.
M&S repeatedly contended that it had explored 16 refurbishment schemes that would have avoided demolition but found none to be suitable for its aims. The retailer described the building as "not fit for purpose", citing low ceilings, blocked lavatories, uneven flooring, disconnected escalators, temperamental heating and thick pillars.
Earlier this year, a high court judge ruled that the government made a series of flawed decisions while trying to block the plans.
Go Local retailers from across the UK gathered in Manchester to celebrate the best in convenience retail at the wholesaler’s annual Retailer Awards.
The event highlights retailers that go above and beyond and their commitment to community involvement, digital innovation, and outstanding customer service. Award judges commended the exceptional quality and high number of entries.
The regional winners on the night included Sathiyarekha Sabaratnam of Go Local Extra in Crewe (North West winner), Aimee and Raf Kaldani of Go Local Extra in Redcar (North East), Andy Robinson of Go Local Extra Summer Lane in Barnsley (Yorkshire and Humber), Rizwan Rafiq of Go Local Extra Sandyford Stores in Stoke (Midlands and South), and Mike Fletcher, Go Local Extra in Oxton, Merseyside (North Wales and Wirral).
Andy Campbell of Go Local Extra in Cheadle won the Retail Execution of the Year, and Anil Velji of The Local in Walmersley, Bury, was crowned Digital Retailer of the Year.
Best Newcomer was announced as Jeevan Chatha of Go Local Extra in Southowram, Halifax. The Most Improved Store accolade was awarded to Ellis and Max Bashir of The Local Saltersgill in Middlesbrough.
Guy Swindell, joint managing director of Parfetts, commented: “Now, as an annual highlight in the retail calendar, our awards get bigger every year and provide an excellent opportunity to bring together retailers from around the country and celebrate the industry. The standards for retailers and suppliers continue to increase, and we take pride in contributing to their success and helping them reach their objectives.
“We’ve had an outstanding past 12 months, which has seen the business go from strength to strength, surpassing last year’s record turnover and welcoming more retailers to Go Local than ever before. Together, we have much to be proud of, and the awards provide the perfect platform to acknowledge the hard work and dedication of our team members, retailers, and suppliers.”
The awards also recognised innovative and retailer-focused suppliers. Heineken won Go Local NPD of the Year – licenced for Cruzcampo. The Go Local NPD of the Year – Non-Licenced went to PepsiCo Walkers for its Extra Flamin' Hot snack range.
Diageo was named Retail Store and Digital Activation of the Year – Licenced for the Guinness campaign, and Kellanova won Retail Store and Digital Activation of the Year—Non-Licenced for Cheez-It.
Own Label Supplier of the Year Licenced was awarded to Westons for the Darwins Fox wine range. Aston Manor won Own Label Supplier of the Year Non-Licenced for Zenergy Power, while George Marriott from Asahi UK was named Most Engaged Account Manager Licenced. The Most Engaged Account Manager Non-Licenced was awarded jointly to Brian Penkethman of AG Barr and Lucy Dickinson of Suntory.
Budweiser Brewing Group was awarded Go Local Supplier of the Year Licenced for the second successive year, while Nestle Confectionery was awarded Go Local Supplier of the Year Non-Licenced.
Depot Takeover of the Year – Licenced was awarded to Carlsberg Marston's Brewing Company for Kronenbourg 1664 Biere, while Depot Takeover of the Year—Non-Licenced was presented to joint winners PepsiCo Walkers for Doritos and Britvic for Pepsi.
Parfetts operates the fast-growing Go Local symbol group and retail club with over 1,300 stores and one of the largest retail clubs with over 5,000 members. It operates across the North, Midlands, South East and Wales through a national logistics network, digital channels and eight wholesale depots.
Parfetts is an employee-owned business, and its employees play a significant role in the company's and its retailers' success.
The public is being urged to show support for small businesses this weekend as Small Business Saturday returns with a mission to deliver a vital boost for firms heading into another challenging winter.
Amid reports of falling small business confidence, research from the campaign found the festive season could deliver a lifeline for small businesses, with over £20 billion estimated to be spent by UK households over the "Golden Quarter" – the peak season from October to post-Christmas sales.
And with the public expected to direct up to a fifth (22 per cent) of its Christmas spend towards independent firms – the small business economy could tap into approximately £4.4 billion.
Encouragingly public support is already riding high as Brits overwhelmingly recognise the incredible value small businesses bring to local communities. Currently two thirds (66 per cent) of people spend on goods or services with independent firms multiple times a month.
And research in partnership with Small Business Saturday’s principal supporter American Express also found four in five people (86 per cent) believe it is important to support small businesses, with 62 per cent believing they boost their local area.
Convenience, customer experience and help for local charities and vulnerable people are some of the top benefits small businesses are seen to bring, according to Small Business Saturday’s survey of 2,000 members of the public.
Taking place on 7 December Small Business Saturday is an annual campaign with a mission to support and celebrate the UK’s 5.5 million small businesses, encouraging people to 'shop local' and support small firms in their communities on the day and beyond.
“Small businesses deliver an immeasurable value that goes beyond their economic contribution – they are the heart and soul of our communities, bringing joy and vibrancy to our lives and local areas, as well as delivering essential local services,” says Michelle Ovens CBE, Director of Small Business Saturday UK.
The team at Billingtons in Oldham
“Public support is absolutely vital for boosting small businesses across the UK on Small Business Saturday and beyond. Many are facing extended economic challenges, and need greater support and confidence to recover and keep going.”
Small Business Saturday’s research also found UK households will spend an estimated £757 on seasonal celebrations on average with over a quarter (26 per cent) expecting to spend more. Women are predominately found to be controlling the festive purse-strings, with 60 per cent in charge of their household budget.
"The festive season is a peak time for our business and we are doing all we can to attract customers by offering them something really special and unique,” says Simon Henry of York Gin, an independent craft distillery in the historic shambles.
“We’ve introduced a new signature mulled gin that is going down very well, and also creates a warm and inviting atmosphere in our 16th-century gin shop for locals and visitors to the city. We have also innovated by joining forces with other small businesses to offer fast-turnaround personalised engraving, as well as opening up the distillery for special Christmas tastings. Small businesses can create a lot of magic for people and the support we get back from the public makes all the difference to our business at this time of year.”
Small Business Saturday was originally founded by American Express in the U.S. in 2010, and it remains the principal supporter of the campaign in the UK. Over the decade the campaign has been running in the UK it has engaged millions and seen billions of pounds spent with small firms on Small Business Saturday.
On Small Business Saturday, customers across the UK go out and support all types of small businesses, both online and in bricks-and-mortar stores; from independent shops and restaurants to small service and b2b-based businesses like accountants and plumbers. Many small businesses celebrate the day by hosting events, offering promotions, and collaborating with other local businesses.
Semper Hopkins Upholstery and Interiors
“With the festive period fast approaching, it’s heartening that public support for small businesses remains strong," said Dan Edelman, General Manager, UK Merchant Services at American Express. "Small Business Saturday is a campaign which remains as important now as when it first began. That’s why American Express is proud to champion the nation’s much-loved independent businesses as principal supporter, encouraging the nation to shop small.”
As well as encouraging the public to shop small, organisers are also urging people to support their favourite independents in other ways, whether it be leaving positive reviews or spreading the word amongst friends and family.
Go here to learn more about Small Business Saturday.
National Lottery operator, Allwyn, today announces that Coldean Convenience in Brighton and Londis Solo Convenience Store in Glasgow have been crowned National Winners at its Local Retail Champions awards event. Both retailers have been awarded £5,000 cash and a Social Value store makeover worth up to £20,000.
In a special awards ceremony at the Hilton Wembley yesterday, the two National Winners and 16 Regional Winners – who were each awarded £5,000 cash – picked up their Local Retail Champions awards which are made from recycled National Lottery Scratchcards. Additionally,102 runners-up will receive a £100 cash prize.
Launched in September, Allwyn’s very first Local Retail Champions campaign – funded by Allwyn’s Social Value Fund – asked the UK public to nominate National Lottery retailers who go above and beyond to support their local community. From almost 1,000 stores nominated, Allwyn selected two national and 16 regional winners, as well as 102 runners-up.
Coldean Convenience, run by Raj and Manish Suchak, was selected as a National Winner for a variety of community-focused work, including creating a safe space for those who need it, donating generously to local food banks, and providing all the food for a local school’s breakfast club and fundraising for the local cat shelter.
Manish Suchak said: “To know that our wonderful customers voted for us gives us tremendous pleasure. It’s a very supportive community in general, so anything we’re doing is just repaying that kindness. I’m now giving some thought to how we can spend the store makeover money, it’s such a lovely thing to be able to spend £20,000 to benefit my customers.”
Londis Solo Convenience Store, owned by Natalie and Martin Lightfoot, took home the other national prize for going that extra mile for their community, including organising charity fundraising events and local litter-picking activities, and providing a home delivery service for those who need it.
Natalie Lightfoot said: “I’m so proud of my shop, I joke that it’s my fourth child. It’s lovely when other people recognise something you’re so passionate about.”
Allwyn’s Director of Commercial Partnerships and Retail Sales, Alison Acquaye-Acford, said, “Congratulations to all of our Local Retail Champions winners. You’re all doing such incredible work in your local communities and, as National Lottery retailers, we’re delighted to be able to recognise and reward you for this.
“National Lottery retailers already do so much for communities around the UK simply by selling lottery tickets that help fund Good Causes to the tune of around £30 million each week. So our Local Retail Champions really are doubling up on efforts to help their communities with the work they’ve been nominated and awarded for through this initiative. Thank you for all your wonderful work.”
R-L Manish and Raj Suchak, Coldean Convenience; Harriet Jameson, Director of Social Value, Allwyn; Julie Brian, Head of Retail Strategy and Operations, Allwyn; Martin and Natalie Lightfoot, Londis Solo Convenience Store
The Local Retail Champions initiative is being paid for with money from Allwyn’s dedicated Social Value Fund, which is an annual £1 million that the company has committed to using to support operating The National Lottery in an environmentally and socially responsible way. This year, Allwyn is using a portion of the fund to reward and recognise the important role its retail partners play in every community across the UK and Isle of Man.
The Social Value store makeover, which the Coldean Convenience and Londis Solo Convenience Store will receive, will help them do even more for their customers, community or environment. Both Manish and Natalie are now looking at social and environmental initiatives to improve their stores and how they support their local community, and some initial thoughts have included solar panels and a defibrillator and bleed control kit.
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ZYN introduces new flavour Tobacco Gold into range
ZYN introduces new flavour Tobacco Gold into range
Independent research conducted by KAM on behalf of Philip Morris Limited (PML) has revealed the growing importance of offering a diverse range of smoke-free products, as retailers gear up for the Tobacco and Vape Bill and the impending ban on single-use vapes in 2025.
The findings highlight that a significant majority (76 per cent) of independent UK retailers feel well-informed and supported in preparation for the regulatory changes. 68 per cent agree that success will require a varied product portfolio – encompassing e-cigarettes and heat-not-burn products – rather than reliance on a single category.
Notably, the research emphasises the increasing prominence of nicotine pouches, with seven in ten retailers currently stocking or planning to introduce the oral nicotine alternative. Since their UK debut in 2019, nicotine pouches have seen extraordinary growth, with a 91 per cent rise in volume recorded in early 2024. This surge reflects the growing appeal of products such as ZYN – the world’s leading nicotine pouch brand – among adult nicotine users.
The study also found that over a third (36 per cent) of retailers have already observed disposable vape users transitioning to other smoke-free options since the announcement of the single-use vape ban. Despite this, concerns remain, with 39 per cent of retailers expressing apprehension about the forthcoming changes.
"In the face of a shifting regulatory landscape, it’s crucial that retailers take proactive steps to meet the evolving needs of adult nicotine users in 2025," said John Rennie, Commercial Director at PML. "With single-use vapes soon to disappear from shelves, adult nicotine users will increasingly turn to alternative smoke-free products that align with their preferences.
“Adopting a multi-category approach and offering a diverse range of smoke-free alternatives will not only help retailers prepare for 2025 but also play a vital role in ensuring that those who do not quit tobacco and nicotine completely do not revert to smoking cigarettes.”
The KAM research also revealed that more than half (51 per cent) of retailers are anticipating increased demand for smoke-free products, fuelled by New Year’s resolutions. Furthermore, just under half (48 per cent) are implementing strategies to help adult smokers move away from cigarettes in the coming year.