TheRetailer_Summer_19

NEWS FROM THE SRC

Highland Show demonstrates need for balanced approach from Government

Ewan MacDonald-Russell Head of Policy scotish Retail Consortium

The Royal Highland Show is a crucial event for Scottish retailers. Retailers, producers, and farmers met to build relationships and understand market conditions and emerging trends. Thousands of visitors enjoy the show, and retailer stands will compete to demonstrate they have the best locally sourced and innovative new products. That’s done through demonstrations, display stands, and of course free sampling – one of the great joys is grazing on freebies at supermarket stands. But behind the customer-facing facade there were serious discussions taking place. Aside from expected concerns around Brexit and the economy there was a real worry about plans to restrict the sale of less healthy products in an attempt to reduce obesity. We don’t disagree there is a need to encourage consumers to make healthier choices – it’s something retailers have led the way on: cutting the price of fresh fruit and vegetables, increasing the availability of healthy snacks, reformulating products to reduce salt, sugar, and fat, and providing clear energy labelling. But where there is clear evidence which supports proportionate measures we think the time has come for the UK and Scottish Government to get involved. Legislation should build on this good work to ensure the maximum number of people benefit – and that all food businesses compete on a level playing field. In fact, we think there is a case for Government going beyond what our Members have already done. We accept certain food categories should be treated differently. Confectionary, crisps, and cakes are great – but we accept they should be sold responsibly to avoid encouraging over-consumption. For our industry this is unprecedented territory. Our business models are built on allowing retailers to promote products to ensure customers can find the best deals. That competition has delivered for consumers – ONS figures show the proportion of household total food spend has halved from 33 percent to 16 percent in recent decades. We believe the steps outlined above match the Government’s own evidence and would help to tackle obesity. Action is needed, and industry must accept a role – but there is a balance to be struck. Because proposals must be proportionate and not inhibit fair competition. Calls to restrict where in store retailers can promote Scottish biscuits for Burns Night or tablet for St Andrews Day are an unreasonable intervention. Banning the advertisement of temporary price promotions means consumers can’t tell what is a bargain. It removes the incentive for price competition which keeps shopping basket prices down. As for bans on sampling – well that would scupper those Highland show tasting treats. Retailers are playing our part in supporting the rural economy – but politicians need to look at the wider issues and take a sensible view. Otherwise future shows are going to be a lot less fun for all of us.

28 | summer 2019 | the retailer