2025 is seeing unprecedented pressures on retailers. There 5 key factors include:
- Rising Food Inflation: Food inflation is projected to reach 5% by the end of 2025, largely driven by the cost of goods and services. Retailers are also facing challenges, including an outdated business rates system and the impact of the Budget employee NI increase.
- Shifting Consumer Preferences: Consumers are increasingly seeking ways to save money on groceries, including cooking at home and using loyalty programs. As the Discounters continue to take share from traditional grocery retailers, many consumers are also prioritising convenience, opting for multiple top-up shops over a single weekly haul.
- Digital Transformation: The digital divide continues to shape shopping habits, with younger consumers more likely to prefer online shopping. Hybrid shopping, combining physical and digital experiences, is becoming increasingly popular.
- Regulatory and Policy Changes: The government is conducting a statutory review of the Groceries Code Adjudicator (GCA) to assess its effectiveness in monitoring and enforcing the GSCOP. The government is also monitoring the impact of the Agriculture Act 2020 and the Fair Dealing Regulations on the food supply chain.
- Sustainability and Ethical Consumption: Consumers are increasingly aware of the environmental and social impact of their food choices. The government is looking to introduce stealth taxes to deal with packaging waste (EPR).
All these factors are putting downward pressure on retailers’ profits. Inevitably, this will lead to tough interactions with supplier account teams. Are your account teams as prepared as they can be, to protect your business?
The 2024 GCA supplier survey revealed that only 50% of suppliers had trained their account teams in GSCOP! GSCOP regulation is designed to protect and guarantee ‘fair and lawful’ trading. The British Brands Group provides a range of functional training with courses covering GSCOP, Competition law and compliance and Trading with Amazon.
These courses will enable you to offer cost effective development opportunities that will directly impact your business results. All feature a strong commercial bias, being about both understanding and application in the trading world. This training is available as face-to-face or online offerings.
The Group is also open to exploring your specific needs if you want to run an in-house course exclusively for your team. The next training dates are (register now):
Fridays 13 & 20 June, GSCOP modular course, online (2 afternoon sessions lasting 2.5 hours each [13:30 – 16:00])