Tesco CEO: “Era of cheap food is over”

Tesco CEO: “Era of cheap food is over”

The era of cheap food is over: the rising demand for food will eventually make the prices go up. That is at least the opinion of Philip Clarke, CEO of the British market leader Tesco.

Chinese demand pushes up prices

"Over the long run I think food prices and the proportion of income spent on food may well be going up," Clarke said during an interview with The Observer. "Because of growing demand it is going to change. It is the basic law of supply and demand."

 

With his statements, Clarke seems to have the same idea as the World Food Organisation, which only last month calculated prices of food will go up by almost 50 percent during the next decade. The main reasons for this are the growing global population and the rising demand of food for the new middle class in countries such as China and India.
 

Horsemeat scandal still has its effects

There have also been a number of food scandals that had its effects on prices, including Clarke's own chain Tesco, which was involved in the horsemeat scandal in the spring of this year. Clarke said Tesco will start to get a bigger portion of its products from local farmers, in an attempt to repair consumer trust in the chain.

 

A survey of the Prince’s Countryside Fund shows the British are willing to pay more for their food if they know a large portion of the money will find its way to local farmers, instead of shareholders of the companies. 80% also said they think it is important to buy national products in order to support local farmers.
Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top