TalkingRetail.com news review of the year

Tuesday, 23 December 2008

It's been another busy year in the grocery retail sector. Here we look back at all the goings-on, from new laws to independent schemes to the sales performance of the biggest supermarkets.

Perhaps one of the biggest stories was the issuing of the final report into the grocery sector, published by the Competition Commission, which suggested the introduction of an Ombudsman to marshal the supermarkets.

Tesco was among the retailers to suggest its creation would be "counter-productive", while convenience stores said they were failed by the report, because it did not address their concerns.

Plans by the government to ban the open display of cigarettes in retail stores look set to go ahead in the new year, although packs will still be allowed to contain branding.

The proposals have come in for widespread criticism, with those opposed arguing the law will not lower the number of young people taking up the habit.

Calls also grew for supermarkets to face punishment for repeatedly offering cut-price drinks, which were as in demand as ever at Tesco.

The government has now said that is proposing a code of practice for retailers over alcohol.

Elsewhere, a campaign by celebrity chefs Jamie Oliver and Hugh Fearnley-Whittingstall to highlight the treatment of chickens gained attention all over the media. And as a result, free-range poultry actually became more popular (well, for a while, anyway).

One thing on everyone's lips has been the credit crunch. Some of the multiples began to suffer - Tesco has seen sales growth drop, while a similar trend, although more defined, hit Marks & Spencer (which introduced branded items onto its shelves for the first time).

And who will forget the collapse of Woolworths, a presence on the high street for almost 100 years?

By comparison, the discount retailers - along with Morrisons - have prospered. Both Aldi and Lidl have recorded record levels of growth, as shoppers try to save their pennies.

Waitrose saw its sales hit slightly but still had time to move into the convenience market and even open a store in Dubai.

In green retail, most of the major supermarkets have said they will try to lower the number of plastic bags used by half before spring.

And one of the biggest dramas on the independent scene was the decision by convenience stores to protest against Vodafone's cut in commission rates.

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