Tesco CEO: “Era of cheap food is over” | RetailDetail

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


Isabel Marant opens first Dutch store

24/05/2018

Fashion brand Isabel Marant opened its very first Dutch boutique in Amsterdam. It is located in the P.C. Hooftstraat, in a former McGregor store.

Zara opens new flagship store with holograms and robots

18/05/2018

Zara’s remodeled flagship store in Stratford (London) welcomes customers with holograms, robot arms and iPad-powered employees. The store wants to unite the best of both the online and offline shopping world.

Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Hema has to pay Levi's millions

17/05/2018

Store chain Hema needs to pay a 4.4 million euro fine to jeans brand Levi’s after the latter went to court because Hema applied its V-shaped stitching to its own collection.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.