Tesco finally says it's in talks to stockpile goods for Brexit | Fin24
 
  • All Mixed Up

    The ANC election manifesto is like the biriyani of political documents, writes Ferial Haffajee.

  • Crackdown

    Businesses have reopened in Zimbabwe as armed soldiers keep watch.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Tesco finally says it's in talks to stockpile goods for Brexit

Jan 10 2019 14:42
Ellen Milligan, Bloomberg

Tesco has remained quiet on Brexit since the referendum result nearly three years ago, but the UK’s biggest retailer has now disclosed it is planning to stockpile in the run-up to the March deadline.

The supermarket has delivered stock-holding and production plans for each of its suppliers by using existing networks and warehousing space. It has offered to help these suppliers hold their stock if they lack the space to do so themselves. This comes a month after Bloomberg reported the big-four UK supermarkets were asking their main suppliers to ramp up stock over concerns that half their shelves will be empty if there is a hard or no-deal Brexit.

“We are making contingency plans now that Christmas is behind us,” Chief Executive Officer Dave Lewis said on a call with journalists, after Tesco’s sales statement Thursday. “We are working with our suppliers to think through sensible opportunities to improve stock-holding closer to the market.”

Lewis also stressed the importance of a frictionless border for the company’s supply chains and said stockpiling is difficult when it comes to fresh food. “We looked at the life cycle and production of product categories that matter most to customers and sat down with all suppliers to discuss their production capability, where they hold stock and if we can help them hold it,” he said.

The Marks & Spencer Group also said it’s ramping up contingency plans to prepare for a no-deal Brexit, which would have a “significant impact” on its food business. It hasn’t yet increased space at its warehousing facilities, but it’s reviewing the number of products with long shelf life, CEO Steve Rowe said on a media call Thursday. The company also raised concerns over its ability to stockpile fresh food.

tesco  |  theresa may  |  uk  |  eu  |  uk economy  |  brexit
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Should it be mandatory for SA companies to report pay discrepancies between men and women?

Previous results · Suggest a vote

Loading...