The Association of Convenience Stores (ACS) has urged fresh produce retailers and suppliers to start thinking seriously about how they will use the ombudsman that is to be set up following the end of the Competition Commission's inquiry into the UK grocery market.
ACS chief executive James Lowman said the formation of a grocery suppliers’ code of practise, to replace the supermarket code of practise, has the potential to make the biggest impact on the fresh produce market.
He told FPJ: “The grocery suppliers’ code of practice should be more proactive than the supermarket code of practice, and give suppliers more protection. This will depend on how growers and suppliers actually use the new guidelines.
“There are already concerns about the way the UK grocery market operates and, through the Competition Commission’s inquiry, suppliers have been collectively making it clear that they are concerned. This has been the case in the fresh produce industry, more so than in other sectors. Now is the time for suppliers to tackle these issues and think about how they can make full use of an ombudsman, or there will be no point in it being there.”
Lowman, pictured, told FPJ that, in response to fierce competition on the high street, convenience retailers are increasingly seizing the opportunities that a fresh and chilled product can offer.
He said: “Fresh produce is a higher risk, higher waste, higher margin category, and the time has come for every retailer to make a clear strategic decision as to whether they are going to enter the market or not.
“They will have to think about and quantify the benefits of fresh and chilled in detail, because it is an important market to be in.”
The final report from the Competition Commission will be released before May 8.
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