How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Supermarket price war hurts UK SME food suppliers


As the supermarkets battle to be top dog, research shows smaller UK food suppliers and grocers are suffering, highlighting the need for them to cut costs.

The number of small and medium-sized (SME) food suppliers experiencing financial distress has more than doubled in 12 months, according to Begbies Traynor’s Red Flag Alert report for Q1 2015.

The research, which monitors the financial health of UK companies, found that supermarkets’ turnaround strategies, generally involving slashing prices and delaying payments, is piling pressure on the smaller businesses that supply them. Begbies Traynor warned that SME food suppliers are “being flattened by this new savage landscape in the UK retail food industry”.

“[M]ass price reductions have severe consequences for less established food retailers and suppliers, particularly SME’s, who now seem to be locked in a David and Goliath-style battle; although this time it appears David can’t win,” said partner and retail expert at Begbies Traynor Julie Palmer.

Last-minute order cancellations, overzealous cosmetic specifications and the rise of discounters such as Aldi and Lidl, which import much of their stock, may see struggling UK suppliers squeezed even further, Palmer warned.

“The introduction of the Prompt Payment Code and the powers given to the groceries code adjudicator to fine supermarkets in breach of the Grocery Supply Code of Practice have only had a minimal impact, and these latest Red Flag figures indicate that they may simply be too little too late for many in the SME supply chain.”

Cutting costs

Bleak short- and medium-term growth prospects mean that smaller UK food suppliers must urgently look to cut costs wherever possible. Energy bills remain a significant expense and, as other issues have been prioritised, many businesses are needlessly paying too much.

SwitchMyBusiness.com offers a straightforward solution, cutting bills by up to 70%, with exclusive supplier rates. Thousands of businesses have already saved an average of £747 per switched meter with a call that takes less than five minutes.

Find out more

For an impartial expert option on which energy supplier is best for your business, fill in the form at the top right of this page or call 0800 411 8830

Related Articles

energy news 240217

Energy News – 24/02/2017

What’s been making headlines across the energy world this week? We round up the big stories from the las...

Read More
content calendar download

Free Content Calendar Download

This month we have a free content marketing calendar download for our blog readers and newsletter subscribers....

Read More
Renewable energy sources: what is hydropower?

Renewable energy sources: what is hydropower?

Energy generated by water has been used for thousands of years but only recently to generate electricity. We t...

Read More
Excellent, 9.7 / 10

Excellent communication and help

"The service was always efficient, emails were tesponded to quickly and efficiently. Would definitely recommend"

This review was posted by Nella Mcgregor on the 27th of February 2017

Great Service

"Jessica Purnell was great, she was helpful and everything was easy. I have saved £150 per month! many thanks Jess :-)"

This review was posted by Melanie Baker on the 23rd of February 2017

Thank you Jess Purnell!

"Jess really helped us out with switching suppliers... she wasn't pushy at all and the service was great. Thanks again!"

This review was posted by Becki on the 23rd of February 2017

Thanks for your help Mark Weeks and Switch My business

"I would like to thank Switch My Business and particularly Mark Weeks for the ease of switching and saving me money! I can highly recommend them. Thanks again Richard Blake"

This review was posted by Richard Blake on the 22nd of February 2017

Aaron Gallagher

"Aaron sorted out a new electricity deal for my church, enabling us to make good savings. We have now received confirmation of our new 3 year plan.During our telephone conversations Aaron was always very polite and efficient. Dawn Marskell"

This review was posted by Dawn Marskell on the 21st of February 2017