At last, some good news for the consumer: inflation inched down. Not a lot.

But thanks to the supermarket price wars, the inherent inflation in the market - this week gelatine is the latest raw material that’s going up in price - is being curtailed by a force every bit as strong: consumer demand.

And the plain message facing retailers and suppliers in this environment is whether to put up prices, keep them at the same level or lower them. None of these options, by the way, is guaranteed to prevent volumes declining. Decisions, decisions.

With little option but to focus on the supply chain, last week we reported on moves to squeeze increasingly stockless inventories still further. This week we report on Tesco’s efforts to share with suppliers more upfront details of its promotions. With worsening availability, this could make all the difference. And while Morrisons’ integrated supply chain works wonders on the fresh produce side, I can also see an opportunity in improving its otherwise clunky supply chain, too.

Here’s more good news for retailers: as we reveal in our special report on world foods, sales of chilled ready meals continue to grow. Up 15% last year. Up another 8.1% this time, as shoppers swap eating out for eating in.

And with scratch cooking on the up, and a greater-than-ever level of global population diversity here in the UK, there’s a real opportunity for retailers that seize the initiative.
One of the brightest spots in Tesco’s patchy performance has been its world foods push. Meanwhile Asda this week admitted that, while world foods were on target to grow by 30% this year, an over-cautious approach to world foods in Netto conversions had hindered growth.

Perhaps the only possible blot on the landscape I see for world foods comes from two of its biggest stars. In the space of a week, Reggae Reggae’s Levi Roots has gone from colourful character to lovable rogue.

And pity poor Premier! Loyd Grossman is the second-biggest brand in the Thai sector. After buying itself some breathing space, this week’s botulism case must feel like the final straw.

Topics