Rishi Sunak says he is ‘confident’ there will be gifts under the tree this Christmas

2.5k

View
comments

Supermarkets have been mocked for filling gaps on shelves with bizarre items to make stores look less bare, as Britain’s supply chain crisis continues to escalate amid growing fears over a lack of goods coming in.

Shops such as Tesco and Co-op have been caught piling salad cream, HP sauce and cooking oil into chillers in a desperate bid to take up space. Meanwhile chocolate boxes have been chucked into fruit and vegetable slots.

A Tesco Extra in Cardiff put a huge display of sunflower oil at the end of a frozen food aisle, while a Co-Op placed salad cream and HP Sauce in chillers  – and a Gloucester Asda filled empty shelves with Lynx Africa deodorant.

Meanwhile a Tesco in Pontypridd, South Wales, put a wall of tomatoes in place of the usual salad items. And a Co-op store in Hertfordshire filled fruit and vegetable sections with Quality Street, Celebrations and Dairy Milk. 

One in three retailers in Britain are expecting prices to increase over the next three months amid cost pressures from rising transport costs, higher energy prices and ongoing labour shortages.

The British Retail Consortium said there are ‘clear signs’ that the combination of issues are ‘starting to filter through to consumer prices’, and small retailers across the UK say they are expecting to have to charge more.

But others said they are ‘desperately holding off from being a Christmas grinch and keeping everything the same’ because they don’t want to give shoppers more reasons not to buy in what is already a tough market.

Today, Rishi Sunak could only offer limited reassurance there would be presents under the tree this Christmas amid fears the supply chain crisis will leave shelves bare, blaming global factors for the chaos.

The Chancellor admitted the government ‘can’t fix every single problem’, but said ministers were doing ‘absolutely everything we can’ to solve issues at British ports and in shops ahead of the festive period.

The crisis was sparked by a dearth of HGV drivers and a lack of C02 pumped into packaging to keep produce fresh or fizzy.

It led to mass stockpiling of food as desperate shoppers hoard non-perishable products they need to whip up Christmas dinner.

Elsewhere in the chaos today:

Supermarkets are putting on their Christmas sales early to avoid shelves being empty in December;It’s feared supplies of toys, electrical goods and other products will be disrupted by logjams at UK ports;Small businesses tell MailOnline they are being ‘forced’ to implement price rises for their customers;Hundreds of overseas butchers are set to be allowed into Britain ease the UK’s Christmas meat crisis;A threatened strike by workers at the DVLA will put Christmas at risk, the Road Haulage Association warned;Industrialist Sir Jim Ratcliffe warned high gas prices will continue throughout winter and industry could close.

Andrew Opie, director of food and sustainability at the British Retail Consortium, told MailOnline today: ‘There are clear signs that the cost pressures from rising transport costs, higher energy and commodity prices, and ongoing labour shortages, all of which are starting to filter through to consumer prices.  

‘A survey of retailers showed that three in five expected prices to go up over the next three months. Government can reduce some of these cost pressures in the near term is by expanding the size and scope of the new visa scheme, so that labour shortages throughout the supply chain can be filled while new British workers are trained.’

It comes as supermarkets and retailers bring forward huge Christmas sales by up to a month to prevent empty shelves in December, with promotions of up to 50 per cent off triggered early to avoid a last-minute rush.

Nathan Le-Moine, director of Telford-based educational toys firm Kiddie Kin, told MailOnline today: ‘Reluctantly, we have already been forced into implementing price increases for our customers. As with many online retailers, we have been hit with increases from every angle – from higher cost of goods, to additional delivery surcharges. The balance between protecting profits and remaining competitive is becoming a real concern.’ 

But Ruth Bradford, owner of the Little Black & White Book Project publishing firm in Bristol, told MailOnline: ‘I’m desperately holding off from being a Christmas grinch and keeping everything the same. 

‘But come the new year it’ll be less about resolutions and more about resignation as I’ll have no choice but to adjust prices to accommodate ever increasing material costs. For now, I don’t want to give shoppers even more reasons not to buy in an already tough market.’

And Keisha Shah, founder of learning products firm Teddo Play based in Milton Keynes, told MailOnline: ‘A classic example of ‘having all eggs in one basket’. Covid has uncovered many flaws in our economic system. 

‘With a majority of the countries outsourcing manufacturing activities to China, we are seeing a domino effect at the moment on an enormous scale. Rising manufacturing costs, supply chain issues, delays, not enough inventory to sell during the busiest time of the year, the list is pretty extensive. 

‘We have remained fully designed and manufactured in the UK so we’re not as badly affected but the rising cost of materials is inevitable. Being a small business, as much as we’d like to increase our product prices to cover these rising costs, it’s just way too much at stake, so the only option we have at the moment is to absorb the costs in the hope to retain our customer base.’

Meanwhile families were warned to start shopping now amid fears supplies of toys, electrical goods and other products will be disrupted by logjams at UK ports. 

Retail leaders said the shortage of HGV drivers to carry loads from docks around the coast is threatening festivities and the wider economy.

But in a boost for shoppers, one of the biggest suppliers of turkeys in the country assured customers Christmas dinner was not off the table just yet.

Ronald Kers, Group CEO of 2 Sisters Food Group, which is associated with Bernard Matthews, said it was bringing in 700 more workers for the festive period.

Mr Sunak set out to reassure the country Christmas will not be cancelled this year amid the ongoing crisis.

He told the BBC: ‘I tell people they should be reassured we are doing absolutely everything we can to mitigate these challenges.

‘They are global in nature, so we can’t fix every single problem. But I feel confident there will be good provision of goods for everybody.

‘And we are working our way to remove blockages where we can as with HGV drivers for example where we’ve provided short term visas.’

Supermarkets are set to move early to prevent a sudden rush in December by bringing forward sales by up to a month.

Retail bosses said it was ‘prudent’ to extend discounts for shoppers to mitigate the HGV driver shortage and port chaos.

Newly-appointed supply chain tsar Sir Dave Lewis held a conference call with retails chiefs yesterday, the Telegraph reports.

One is believed to have claimed the officials asked companies to start festive deals early – but this was shot down by government insiders.

The source said: ‘We do understand that most of the retailers are doing that anyway. That’s a business decision they have taken.’

Morrisons announced yesterday it was launching a ‘mega sale’ as it slashed prices on brands such as Disney Princess, Lego and Peppa Pig by up to 50 per cent.

Shoppers will until November 2 be able to bag the hotly anticipated LOL Surprise Mega Remix Set for just £75, down from £150.

Peppa Pig Playhouse has also gone down from £110 to £55, while Lego sets will start at just £17.50.

One Disney Princess Styling Head of Beauty And The Beast’s Belle was cut from £25 down to £15.

A Glimma Girlz Styling Head was dropped from £11.50 to £8.05 on the food giant’s website.

A Mars Converters toy had its price slashed from £11.50 to £9.20 while a Playgo 2 In 1 Piano & Xylophone fell to £6.45 from £9.25.

A My Lil Wardrobe 12 inch toy doll with clothes that can be attached fell over £5 from £17.50 to £12.25.

A Morrisons own brand bubble machine lawn toy mower dropped in price by £2 from £10 to £8.

Toys Buyer at Morrisons David Catton said: ‘At Morrisons, our shelves are fully stocked with Christmas gifts.

‘We want to help customers bag a bargain and get the Christmas shopping sorted early so they can focus on spending quality time with friends and family during the festive season.’

Chief Executive of Iceland Richard Walker said it was also one of those starting sales early, adding: ‘It’s prudent to get ahead of the game.’

The frozen food giant showed discounts on a range of festive favourites on Thursday morning. 

An array of Pringles flavours were slashed by half price from £3 to £1.50 while Birds Eye 4 Chicken Quarter Pounders were cut by the same amount.

Dr. Oetker Ristorante Pepperoni-Salame Pizza was down to just £1.25 from £1.50 and Birds Eye 22 Chicken Dippers are £1.50 from £3.

Families were warned last night to start shopping for Christmas now amid fears toys, electrical goods and other products will be disrupted by logjams at UK ports.

Retail leaders said the shortage of HGV drivers to carry loads from docks around the coast is threatening festivities and the wider economy.

Shipping giant Maersk diverted some supersize vessels away from Felixstowe – the UK’s largest container port – to alternatives on the Continent such as Rotterdam.

It is hoped containers will then be transferred to smaller ships that should find it easier to get a berth at smaller UK docks.

Meanwhile, supermarkets have been trying to fill up empty shelves with products they do have in stock, with a Tesco Extra in Cardiff placing dozens of sunflower oil bottles near a frozen food section.

David Jinks, of the parcel delivery firm ParcelHero, said: ‘Britain’s Christmas is relying on a Dunkirk-style removal of goods from Europe on to smaller ships bound for ports across the UK. That looks to be the only way to bring many Christmas gifts home.’

Some businesses are wary of leaving shelves stripped bare, filling fruit and vegetable aisles with festive items such as Quality Street and Celebrations.

One industry source told the Sun: ‘Retailers know there is some tension in the air and don’t want to see panic buying.’

Peter Wilson, of shipping agency Cory Brothers, said the UK has a ‘significant pinch point around HGV drivers and the demand on them to move goods from the ports’.

The problems are hitting deliveries of kitchen white goods, electrical appliances, toys, clothing and Christmas products, he added.

He insisted the supply chain will not fail but told BBC Radio 4’s Today programme consumers should ‘be sensible, think ahead, plan appropriately and order your Christmas goods and the items that you need in a timely fashion to ensure you have them’.

The British Retail Consortium’s Andrew Opie said: ‘Congestion at Felixstowe is yet another unwanted side-effect of the HGV driver shortage.

‘As cargo cannot be removed fast enough, there is a backlog of containers at the ports preventing new ships from docking and unloading.

‘Retailers are working with suppliers to mitigate issues, including finding alternative routes to bring goods into the country, but further disruption may be unavoidable.’

The British Toy and Hobby Association said: ‘We expect continued disruption to delivery schedules… over the coming months.

‘There are plenty of toys to choose from presently but, in common with other sectors’ advice, buying early – especially if buying for a Christmas or a birthday present – is prudent.’

Gary Grant, of the toy giant The Entertainer, said yesterday Barbie dolls and Paw Patrol toys are ‘prime candidates for being short in the Christmas season’.

Elf on the Shelf supplies may also be affected, with one million of the toys being held in China ahead of shipping.

One of this year’s biggest toys, the Cocomelon Bedtime JJ Doll, is also almost nowhere to be found in the UK amid the crisis.

Sellers on eBay are making the most of the low stock levels, with PS5 consoles going for up to £3,000, nearly seven times their RRP of £450; and the Xbox Series X for up to £2,000, more than four times above the same RRP.

The iPhone 13 Pro Max, which costs between £1,049 and £1,549 via Apple depending on the model, is going for up to £3,000 on eBay as retailers such as Ebuyer take pre-orders on their next delivery due in three weeks’ time.

And the Cocomelon Musical Bedtime JJ, which has an RRP of £28, is going for up to £109 on eBay.

The doll, based on the children’s TV series featuring nursery rhymes, is one of this year’s most hoped-for toys under the tree.

The London-based website Stock Informer, which tracks which retailers have popular products available, states that there is no stock for any of these four products anywhere other than eBay or online marketplace StockX. 

The company, which earns money from qualifying purchases, checks retailers including Amazon, Very, Currys, John Lewis, Argos, AO, Asda, Smyths, Game and Ebuyer and sends email alerts when rare items come into stock.

The PS5 stock issues have been hitting Sony since it launched the console in November last year, with the firm saying one of the main reasons was huge demand amid a shortage of semi-conductors and other components. 

Microsoft has also faced stock issues since launching Xbox X last November and said a fortnight ago that these are set to continue into 2022 amid the ongoing global chip shortages that are also impacting phone production. 

As for Apple, its shares fell on Tuesday after claims that it could cut its iPhone 13 production targets by up to 10million units because of the chip shortage. The tech firm only launched the new model last month.

Mr Grant told BBC News: ‘There’ll never be toy shops with no toys. There will be toy shops without all the toys that they would normally expect to have.

‘That is largely down to transportation and warehouse issues, rather than there being a shortage of toys.’

Mike Green, found of Stock Informer, told MailOnline yesterday: ‘We basically track online retailers for stock of certain high demand and low supply products, and notify our users once stock is located.

‘Since Covid lockdowns started March 2020 we have seen very large spike in demand across many products but especially video game consoles.

‘Late March 2020 to July 2020 saw a large spike and supply issues with the Nintendo Switch console. Inflatable hot tubs also proved very popular during the summer lockdown.

‘New Playstation and Xbox console launches are always accompanied with high demand and stock shortages, however during the launches in November 2020, I have never seen such high demand like it. I have been in this business over 14 years.

‘To date, Stock Informer has helped tens of thousands obtain their consoles since launch.

‘With Christmas 2021 approaching, the PS5 and Xbox Series X consoles will continue to prove very difficult for people to get their hands on and we expect this to continue well into 2022.

‘With the current chip shortages and supply chain issues, we are also expecting many supply issues with many electronic toys and associated products.’

Alex Hersham, of the freight forwarding company Zencargo, used by brands including Vivienne Westwood, Swoon Furniture and Soho Home, said: ‘Some containers have been sitting at Felixstowe for double the usual length of time – between ten and 20 days – pushing the port towards capacity. 

‘With Felixstowe handling almost 40 per cent of all the containers coming to and from the UK, this adds yet more imbalance to Britain’s supply chain.’ 

But Tim Morris, of the UK Major Ports Group, said: ‘There’s no need to panic. The global supply chains are very busy but they’re robust. 

‘There’ll be some short-term fluctuations but retailers, their suppliers, all the logistics companies that work in between the manufacturing and the sales side will be working hard to keep supplies moving.’ 

Tory party co-chairman Oliver Dowden insisted the Government is ‘working through these challenges’, for example by boosting training places for HGV drivers. 

Asked about Christmas, he said: ‘I’m confident people will be able to get their toys for Christmas. Some people buy very early for Christmas… others buy later. I would say just buy as you do normally.’

Elsewhere turkey industry bosses assured customers there would not be a shortage of birds over Christmas.

Mr Kers, Group CEO of 2 Sisters Food Group told the Today programme: ‘Thankfully the government and in particular Defra have stepped in.

‘They have opened up the seasonal work scheme, also for poultry. It came a little bit later, a little bit to short, but still we are able to bring in an additional 700 people.

‘It will help us to secure the volume we think we need for Christmas.’

He added: ‘The overall supply chain in very fragile as it is… it’s fragile but we’re working very hard to make sure our turkeys are in stores.’

** Have you seen products in strange places at your local supermarket? Please email: tips@dailymail.com **