Tesco chairman warns shops could see Christmas shortages over driver issues

Supermarkets

UK supermarkets could see food shortages at Christmas due to Brexit-related supply chain disruption, the chairman of Tesco has warned.

John Allan, who has overseen the Big 4 grocer since 2015, said the government should change rules for lorry drivers to allow for more emergency workers from overseas to help solve the problem.

Allan told BBC Radio 4’s World at One that supermarkets would normally be building stock now ahead of Christmas and that the “straightforward solution” to driver shortages would be “to allow UK industry to bring in skilled drivers from elsewhere”.

“We are very short of drivers, it’s a combination of many EU drivers having decided to go home and also the ageing age profile,” Allan said.

READ MORE: Food shortages worst in my lifetime, says Co-op chief

“I think certainly Brexit has been a contributor to that but also improving economies, higher wages in some of the countries that they’ve come from historically, have also led to that flow.”

He said there could be some shortages as a result but stressed it is important not to “over-dramatise” the extent of the issue yet.

He added: “At the moment we’re running very hard just to keep on top of the existing demand and there isn’t the capacity to build stocks that we’d like to see. So, in that sense, I think there may be some shortages at Christmas.

“But, again, I wouldn’t want to over-dramatise the extent to which that would be the case, I think it’s very easy to make a drama out of a modest crisis.”

Iceland managing director Richard Walker also warned the UK faces “big shortages” of lorry drivers, with the situation threatening Christmas products.

“Of course, we’ve got Christmas around the corner, and in retail, we start to stock build really from September onwards for what is a hugely important time of year.”

“We’ve got a lot of goods to transport between now and Christmas, and a strong supply chain is vital for everyone,” Walker said.

“The reason for sounding the alarm now is that we’ve already had one Christmas cancelled at the last minute. I’d hate this one to be problematic as well.”

Walker added the chain has seen daily delivery cancellations as the disruption continues.

“We’ve had deliveries cancelled for the first time since the pandemic began, about 30 to 40 deliveries a day,” he said.

The retailer said it has seen particular lines, such as bread and soft drinks, impacted by issues facing suppliers.

The news comes as Steve Murrells, chief executive of the Co-operative Group, also warned that current food shortages are at a “worse level” than he has ever seen, with the company having to reduce product range to help serve customers.

He told the Times newspaper: “The shortages are at a worse level than at any time I have seen.”

Murrells said the disruption to supply has been driven by “Brexit and issues caused by Covid”, and the firm is retraining staff as lorry drivers to help fill vacant roles.

with PA Wires

Click here to sign up to Grocery Gazette’s free daily email newsletter

Supermarkets

RELATED POSTS

1 Comment. Leave new

  • Why when we can all see the solution, isn’t Government big enough to do a U turn and allow visas for “overseas” drivers? How bad does it have to get?

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu

SUBSCRIBE TO OUR NEWSLETTER

Sign up to our daily newsletter to get all the latest retail tech news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.