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Peak District Farming > farm & country news > Consumers give supermarkets power

Consumers give supermarkets power

Posted on Friday, 16 January 2009 11:16AM by
The Chief representative of British retailers spoke at the Institute of Economic Affairs Working Lunch on 14 January 2009. 

The Director General, Stephen Robertson said "Who holds the power in retailing? It's not supermarkets. It's not regulators or corner shopkeepers. It's customers. Every time you decide where and what to buy you're stating your preference.

Few farmers deal directly with supermarkets but, ultimately, supermarkets are British agriculture's biggest - though not only - customer. Overall three quarters of the food sold in UK supermarkets is sourced in the UK. And, despite the accusations you sometimes hear, healthy business relationships between retailers and producers are at the heart of that.

And let's not be shy about businesses negotiating strongly – it has important economic benefits. Firstly it provides better value for customers and secondly – and crucially – it incentivises innovation and efficiency in the supply chain.

If a car manufacturer encourages a widget supplier to "Make them cheaper and better" we all applaud. If a supermarket does the same the Government or the Daily Mail lambasts them. Odd double standards I think.

Customers have choice – 94 per cent of us have access to supermarkets of at least three different chains within 15 minutes of where we live – and customers exercise that choice."
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