UK retail sector is one of the most competitive and innovative in the world

Sitting round the table with the team at The Grocer this week reminded me of the huge breadth of subjects impacting our industry on a daily basis. On the one hand there are global challenges like inflation and the cost of living crisis, macro-political issues such as DRS and socio-economic concerns over health. On the other hand, there are exciting opportunities from new technologies, processes and partnerships, new trends, new products and new strategic acquisitions.

While I’ve encountered many challenges and opportunities during my 18 years of retailing so far, every day there are new factors to consider and decisions to be made.

Yet despite this continuous evolution, a constant remains – that the UK retail sector is one of the most competitive and innovative in the world – anchored in the reality that our customers can, and do, vote with their feet.

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Margins are thin and must balance the multiple demands of delivering value for customers, driving sustainable growth and employment for the business, and maintaining positive supplier and producer relations across complex supply chains. Investment isn’t made as a direct A to B transaction but as a thoughtful consideration of multiple factors, increasingly supported by hard data such as our Asda Rewards programme.

Mohsin Issa frequently reminds us that criticism and competition are not to be feared. The drive to be better than the retailer down the road ultimately makes us all better – and do better for our customers. And while headline-grabbing terms such as ‘greedflation’ make good copy, they are counter factual to the DNA of an industry driven by strong competition to offer and consistently deliver quality products at fair, decent prices.

There are few in this industry in a position to raise prices excessively. And where they do, in this country especially, the gravity of competition invariably pulls them back down. So as suppliers consider their pricing, their positioning, their product innovation, their promotional strategies and even their strategic acquisitions, they need to make sure they don’t lose sight of the core.