Tesco says it is making preparations to stockpile for Brexit
- Credit: Kois Miah
Tesco has followed Aldi in announcing that it will become the latest supermarket to consider stockpiling for Brexit.
The supermarket's chief executive Dave Lewis said ensuring uninterrupted transport of fresh food across borders was the 'single biggest challenge' for supermarkets if the UK crashes out of the EU without a deal.
He said the group was making contingency preparations for a no-deal scenario, but was still in 'wait and see' mode until the outcome of negotiations becomes clearer.
You may also want to watch:
He said: 'The biggest single challenge will be in a no-deal scenario and what happens with fresh food.
'The possibility of stockpiling fresh food is very, very limited.'
- 1 The stench of scandal seeping out from Britain
- 2 Why is devout Jacob Rees-Mogg so quiet about Boris Johnson's affairs?
- 3 Dominic Cummings' new venture could cause concern for No 10
- 4 Major and Blair were right about Brexit and Northern Ireland
- 5 Roman Kemp: Depression and coping with George Michael's death
- 6 Government deletes pro-Scottish independence blog post
- 7 The symbolism behind the reopening of pubs
- 8 Why are there so few BAME faces on the fronts of our newspapers?
- 9 David Cameron and Matt Hancock discussed NHS scheme over 'private drink'
- 10 PM chooses not to attend Prince Philip’s funeral because of guest limits
He stopped short of confirming if Tesco was actively stockpiling, but said it was a possibility with dry food.
He added that plans to ensure fresh food transport is not held up is 'where all our attention will be in the lead-up' to Brexit, with contingency planning stepping up after Christmas if a deal is still not struck.
The comments come after German discounter Aldi said that it had considered stockpiling food as part of its preparations for Brexit.
But its UK boss, Giles Hurley, added that Aldi's increased fresh food range would make this more difficult.
Brexit secretary Dominic Raab said in July that the Government is making plans to secure food supply in the event of no deal being struck.
But he said it was 'wrong to describe it as the Government doing the stockpiling', indicating that industry would need to take the lead.
Research last week revealed that food retailers face a mammoth £9.3 billion cost in the event of a no-deal Brexit.
According to Barclays Corporate Banking, higher tariffs and customs costs could hit supermarkets and their supply chains hard.
The report also warned that shoppers would take on some of the extra cost in the price of their groceries.
Without a deal, Barclays said that food and drink from the EU would be slapped with an additional 27% tariff under World Trade Organisation (WTO) rules, compared with between 3% and 4% on non-food items.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.