With this trend this will only continue to put strains on relationships between the suppliers and Big 4 Supermarkets. This trend will also continue to be a good thing for the Discount Retailers as they continue to take market share.
The newly-published Summer 2016 edition of the Lynx Purchasing Market Forecast showed a range of factors linked to the European debate combining to put upward pressure on prices. It said that suppliers were facing the challenge of the weakening of sterling that has hit the price of imports both from Europe and further afield. The report highlighted imports including summer salad produce such as tomatoes, lettuce and cucumbers, which were mainly imported from Europe, as well as pork, as UK production declines. Key commodities such as coffee and bananas are traded in dollars, also pushing up the prices. The availability and cost of labour and the introduction of the National Living Wage in April have already increased labour costs, the report said.