Welcome to the December issue of The Grocery Trader. We've got features on Lunchtime and Spring Cleaning, and not forgetting our Review of the Year, in which we look back at the stories we ran in these pages during 2007.
The multiple grocers, their suppliers and their logistics partners do a great job all year round providing a superb array of products. But Christmas is the time of year when they really come into their own, working together as one. So here's to all of you over the next few weeks.
The major grocers' sales and profits continue to grow, and by being so successful inevitably they present a highly visible target for critics. The charge that the top grocery retailers are building up land banks rumbles on, as do the accusations that supermarkets are killing off the neighbourhood independents. The past few months have seen the multiples come through successfully. Similarly, the major suppliers have proved more than able to face crises, as shown by Bernard Matthews' recovery after its contamination crisis earlier this year.
In the post-Northern Rock era, the City is decidedly jittery about the prospects for the next few months. Meanwhile the UK multiple grocers remain calm. They are here for the duration - people always need to eat and drink.
The challenge this year, next year and beyond is congestion. A senior Army officer said on the radio recently that the logistical challenges faced by the supermarkets in keeping the shelves filled with baked beans were as nothing compared to the difficulties involved in delivering boots to our boys in Basra. That may be true, but the fact is that over-congestion in our Southern ports and on our road network presents a serious problem facing the UK retail industry, which won't go away. London is a case in its own rightÉ
At Teesport in North East England, port operator PD Ports is actively delivering the solution with its Portcentric logistics concept, as Graham Wall, PD Ports' Commercial Director, explains in our interview. At its Teesport-based import centre, ASDA Wal*Mart de-stuffs containers of imported goods and holds stock inside their Distribution Centre located within Teesport's boundaries. This saves the retailer from having to transport its goods to inland distribution centres, and PD Ports is now seeing other top retailers, wholesalers and manufacturers expressing an interest in joining them.
As its next step, PD Ports is set to further alleviate our 'Southern discomfort' with its award-winning plans to develop the Northern Gateway Container Terminal at Teesport, utilising the Portcentric approach. It's a story we'll be following in 2008. Have a great Christmas, and see you in the New Year!
Charles Smith
