Retailer’s Scottish Sports Fund initiative has supported more than 60 clubs this year
Aldi Scotland has revealed that it has donated £50,000 to amateur sports clubs this year, supporting more than 60 local clubs across six Scottish regions.
The retailer’s ‘Scottish Sports Fund’ encourages people of all ages and abilities to participate in physical activity within their local communities. It also provides a funding pot for sports clubs to apply for financial support ranging from £500 to £2,500 to help with purchasing new equipment or team kits.
Since launching in 2016, almost 600 clubs in Scotland have benefitted from a funding worth more than £390,000, as part of Aldi Scotland’s goal to improve community access to sports across the country.
This year, funds have been donated to sports teams across the country, including Edinburgh, Dundee, Tayside, Perth, Kinross, Fife, Glasgow, the North East, the Highlands and Islands, and Central Scotland.
One benefactor was the 2011 Girls Team at Musselburgh Windsor Girls Football Club, who received the top award of £2,500. One of the oldest and largest youth football clubs in Scotland, the community club helps girls looking to develop their skills in football.
Buchan Park Bowling Club also received £1,000 through Aldi’s Scottish Sports Fund. Based in West Lothian, the club promotes and trains members of the public in bowling.
Laura Bosworth, Musselburgh Windsor Girls Football Club, said:“We are so pleased to have been awarded the highest funding of £2,500 from Aldi’s Scottish Sports Fund.
“This funding has made a real difference to the work we do in our local community to continue helping girls develop their skills in football.”
Richard Holloway, Regional Managing Director, Aldi Scotland, said: “Since 2016, Aldi’s Scottish Sports Fund has given a wide range of sports clubs the chance to benefit from essential funding to help them invest in much-needed equipment and resources.
“We remain committed to supporting sports clubs across Scotland to help continue the fantastic work they do in their local communities. Every year, we are blown away by the volume of applications we receive, and we are very much looking forward to welcoming even more in 2024.”
Applications for next year’s Scottish Sports Fund are expected to open in Spring next year.
The Aldi Scottish Sport Fund is open to any sporting organisation in Scotland that meets the application criteria. All applications will be considered by the Aldi judging panel and entrants will be notified of the outcome of their funding application within four to six weeks from the region’s deadline.
Aldi store colleagues in Edinburgh & The Lothians are to get a pay rise, which will see Aldi become the first supermarket in the UK to guarantee store and warehouse colleagues pay of at least £12 an hour.
This move makes Aldi the first supermarket to offer rates in line with the Real Living Wage that was set by the Living Wage Foundation in October this year.
Store Assistants’ pay will rise further to £12.95 nationally, and £13.85 within the M25, based on the length of service as part of Aldi’s £67m investment into colleague pay.
Aldi is also the only supermarket to offer paid breaks, which for the average store colleague is worth an additional £900 annually.
Giles Hurley, Chief Executive Officer of Aldi UK and Ireland, said: “Just as we promise to provide the best value to our customers, we are also committed to being the highest-paying supermarket within the sector – which is why we are investing more than ever into this pay rise.
“We are incredibly proud of every single member of Team Aldi and this is a way of thanking them for all their hard work over the past year. We believe our colleagues are the best in the sector and they play a huge part in making Aldi what it is today.”
The news comes in just as Aldi has been named the UK’s Cheapest Supermarket, according to consumer champion Which? (November 2023). Aldi was also named the UK’s Cheapest Supermarket in both 2021 and 2022.
Aldi’s commitment to being the cheapest supermarket shows no sign of slowing, having made over £360m of price reductions across 800 items so far this year.
Aldi is the UK’s fourth-largest supermarket and has more than 1,000 stores, 11 regional distribution centres and 40,000 colleagues across Britain.
The CMA has set out the latest findings and the next steps in its ongoing review of the groceries sector today
Some branded suppliers have pushed up prices by more than their costs increased, but in most cases, shoppers can find cheaper alternatives.
CMA to examine further whether ineffective competition in the baby formula market could be leading to parents paying higher prices.
CMA to launch review of loyalty scheme pricing by supermarkets, considering its impact on consumers and competition in the groceries sector.
The Competition and Markets Authority (CMA) has set out the latest findings and the next steps in its ongoing review of the groceries sector today.
It follows an initial assessment that focused on retail competition in the groceries sector published in July.
That assessment identified 10 product categories (including milk, baked beans and baby formula) for further analysis in a second phase of work, to gain a deeper understanding of competition across the supply chain, with a particular focus on branded and own label food suppliers.
Competition and price dynamics in the supply chain
Food price inflation continues to be at historically high levels, despite falling to 10.1% in October 2023.
Across the food and groceries sector, the CMA found that high inflation has been driven largely by rising input costs, particularly for energy and key agricultural inputs like fertiliser.
But the evidence collected by the CMA indicates that, over the last 2 years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food have increased their unit profitability and, in doing so, have contributed to higher food price inflation.
However, own label products often provide cheaper alternatives with suppliers of these products earning lower profit margins and competing to win and retain contracts from retailers.
In all but one of the relevant product categories the CMA looked at, as food prices have risen, many consumers have switched away from brands towards own label alternatives, or reduced their consumption, leading to a decline in brands’ market shares and profits. This switching is positive for competition and allows those able to switch, to lessen the impact of high food price inflation.
Overall profit margins have fallen across most branded manufacturers since 2021, mainly because of a fall in sale volumes due to consumers switching to cheaper alternatives.
The CMA has also heard from leading brands that they are aiming to use any future reductions in their input costs to offer customers more promotions, rather than cut the standard price they charge supermarkets for their products.
Baby formula
Baby formula is a product category where different dynamics seem to apply. The prices for baby formula in the UK have risen by 25% over the past 2 years.
Similar to other products the CMA examined, evidence suggests that branded suppliers of baby formula have also increased their prices by more than their input costs. On top of this, the market is highly concentrated (2 firms have around 85% of the market share) and brands have maintained high profit margins over the last 2 years.
Unlike other products examined, there is little evidence of parents switching to cheaper branded options as prices have risen and very limited availability of own-brand alternatives.
Families could make significant savings of more than £500 over the first year of a baby’s life, through buying cheaper baby formula options. Regulation ensures that all baby formula products, including cheaper options, provide all the nutrients a healthy baby needs.
Despite this, the CMA is concerned that parents may not always have the right information, at the right time, to make effective choices. It is also concerned that suppliers may not have the right incentives to offer infant formula at competitive prices.
The CMA will now undertake further work to better understand consumer behaviour (including what influences choice) and barriers to entry and expansion for baby formula manufacturers and consider whether any changes to the regulatory framework could help the market work better.
An update on the CMA’s work into baby formula will be published in mid-2024.
Loyalty pricing
With the rise in some supermarkets making cheaper prices only available for loyalty card members, the CMA plans to begin a review of the use of loyalty scheme pricing by supermarkets in early 2024. The CMA’s work will consider how the growth in loyalty scheme pricing is affecting consumers and competition in the groceries sector.
Sarah Cardell, Chief Executive of the CMA, said: “Food price inflation has put huge strain on household budgets, so it is vital competition issues aren’t adding to the problem. While in most cases the leading brands have raised prices more than their own cost increases, own label products are generally providing cheaper alternatives.
“The picture is different when it comes to baby formula, with little evidence that people are switching to cheaper products and limited own label alternatives. We’re concerned that parents may not always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices. We will investigate this further and consider whether changes to regulations are necessary to ensure parents can get the best deal possible.
“We have also seen an increase in the use of loyalty scheme pricing by supermarkets, which means that price promotions are only available to people who sign up for loyalty cards.
“This raises a number of questions about the impact of loyalty scheme pricing on consumers and competition and the CMA will launch a review in January 2024.”
More information and the full report can be found on the CMA Groceries case page
– Prices will be locked at new price until 31st December –
– Morrisons is investing over £4 million in these new price reductions –
Morrisons is cutting the price of 58 popular festive items and is committing to keeping the prices low until the end of the year. The cuts are being made well in advance of December 25th so that customers can stock up and spread the cost of their Christmas grocery shopping.
Key festive items such as stuffing, roast potatoes, cranberry sauce and tin foil have been cut in Morrisons latest wave of price activity – its tenth of the year.
Morrisons is investing over £4 million to cut the price of the products by an average of almost 20 per cent from current prices. The items have all been chosen because they were particularly popular at Christmas last year – with an average uplift in sales of over 90 per cent throughout the festive period.
The total price of all 58 items in Morrisons festive basket is nearly two pounds cheaper than the same basket of items would have cost in Christmas 2022, despite the significant inflation over the last year.
The cuts cover Christmas dinner must-haves and trimmings as well as drinks and nibbles including Bucks Fizz, tonic and peanuts. Festive hosts can also stock up on kitchen essentials such as kitchen foil and napkins while key ingredients needed to create seasonal bakes have also been cut such as mincemeat, sultanas and pastry – as well as cream.
These lower festive prices introduced in Morrisons supermarkets and online this week are on top of further 62 price cuts made last week on items such as chicken wings & drumsticks, frozen chips, bread and smoked fish. Those prices will be held for at least eight weeks and form part of the commitment Morrisons has upheld since January to always have over 1,000 prices lowered and locked each week.
Rachel Eyre, Morrisons Chief Customer and Marketing Officer, said: “We know that Christmas is an expensive time of year and that our customers are having to make tough choices about what to put in their baskets.
“We are working hard to help them when it comes to their festive grocery shopping and want to protect them from rising costs so despite the significant inflation we have seen over the last twelve months, our basket of 58 festive items is cheaper than it was in 2022.”
KEY DEALS ON CHRISTMAS FAVOURITES
WAS
NOW
Morrisons Cocktail Prawns 300g
£4.30
£3.59
Morrisons Raspberry Sherry Trifle 900g
£4.00
£2.99
Winter Warmer Mulled Wine 75cl
£3.00
£2.50
Morrisons Cranberry Sauce 200g
£1.09
£0.59
Morrisons Mincemeat 822g
£2.79
£2.15
Morrisons Dry Roasted Peanuts 450g
£2.50
£1.59
Morrisons Yorkshire Wensleydale with Cranberries 200g
– Morrisons has the largest supermarket Christmas pet range this year –
– The dog and cat range will include almost 30 products, from advent calendars to Christmas dinners and festive jumpers –
– 10% of sales of the Morrisons Rudi Reindeer Iced Dog Cookies go to charity partner Together for Short Lives –
– The range is available in-store and online now nationwide –
With more than half (57%) of British households owning a furry friend, animal companions are an integral part of Christmas festivities for much of the nation. Morrisons is making sure Christmas 2023 is the ulti-mutt celebration for pets as it unveils its biggest festive pet range to date.
Comprising nearly 30 products, pet owners will be able to pick up advent calendars, Christmas dinners, jumpers and more so furry friends don’t miss out on the festive fun. With prices starting from just £1.49, there’s a pocket-friendly treat for every pet owner to pick up.
For those looking to share the Christmas countdown with their pets, shoppers can grab the Morrisons Pawsome Meaty Christmas Dog Treat Advent Calendar and Morrisons Purrfect Meaty Christmas Cat Treat Advent Calendar, both £3.99, filled with tasty treats for pets to enjoy each day.
Customers can also kit their pets out in the finest festive wear with the Gifts for Pets Dog Festive Jumper (£4.99) and Gifts For Pets Reindeer Headband for Dogs & Cats (£2.99).
For a delicious Christmas Eve treat, pups can chow down on Morrisons Rudi Reindeer Iced Dog Cookies (£3.99), adorably shaped like festive reindeer. 10% of sales from the Rudi range go to charity partner Together for Short Lives, giving shoppers even more reason to pick up the tasty treats.
Pets don’t need to miss out on the big day itself either, as the range boasts all of the ingredients needed for a paw-sitively delicious pooch Christmas dinner. Customers can choose from Morrisons Turkey and Bacon Hot Dogs for Dogs (£1.99), Morrisons Sausages in either Christmas Dinner or Pork & Apple Stuffing Flavour for Dogs (£1.99), Morrison Pigs in Blankets for Dogs (£2.99), and of course Morrisons Mince Pies for Dogs (£2.99) to top it all off.
The range also includes plenty of treats purr-fect for stocking fillers, such as the Morrisons Merry Poochmas Rawhide alternative Chew sticks (£1.99), available in the shape of Christmas trees, or Gingerbread people. Cats can tuck into the Morrisons Tasty Tuna Meowy Christmas Cat Sticks or Morrisons Delicious Duck Christmas Quackers Cat Treats, just £1.49 each, and there are pet safe crackers for both cats and dogs (£2.49).
Andy Whiteman, Product Developer at Morrisons, said:“Santa Paws is truly coming to Morrisons this year as we introduce our biggest and best Christmas pet range.
“We know pets are an important part of so many families, so now shoppers can pick up everything they need to share the celebrations with their cuddly companions, without breaking the bank.”
For more information on the wider Morrisons Christmas range, visit:
A Firrhill High School pupil has been crowned the winner in Aldi’s nationwide lorry design competition, as part of its ongoing partnerships with Team GB and ParalympicsGB.
The supermarket asked young people across the country to hand draw a design for its next lorry, with Firrhill High School pupil Victoria, age 13, winning the competition.
The designs had to inspire others to enjoy healthy and sustainable food, with Victoria’s winning design focusing on how incorporating fresh fruit and vegetables can help everyone build a healthy future.
The judges, including Scottish Paralympian Melanie Woods, were impressed by Victoria’s creation, which will now be seen on an Aldi lorry as it delivers the supermarket’s products to stores across the country.
The supermarket has also rewarded the young artist with Aldi vouchers and an exclusive Team GB and ParalympicsGB goodybag. Victoria’s school will also receive £1,000 to spend at Aldi.
Jemma Townsend, Marketing Director at Aldi, said:“The Design a Lorry competition is part of our collaborative efforts with Team GB and ParalympicsGB to promote healthy eating among young people.
“We had more than 12,000 entries from talented young artists, but it was Victoria’s design that really stood out to our judges due to its eye-catching illustrations and use of bold colours.”
Tim Ellerton, Commercial Director at Team GB, said: “There were so many strong entries this year, it made it difficult to pick just two winners.
“However, Victoria’s design captured the topic of healthy and sustainable food perfectly.”
Jenny Seymour, Commercial Director at ParalympicsGB, said: “Victoria’s winning design showcases brilliantly the importance of fresh and healthy food.
“Our athletes enjoyed surprising her at school last week when her winning design appeared on the road for the first time and hosting an assembly for the pupils.”
Alongside the Design a Lorry competition, Aldi, Team GB and ParalympicsGB’s Get Set to Eat Fresh programme offers a series of teaching resources to educate children about nutrition and build their love and curiosity about healthy, sustainable food.
Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall
Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified
Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily
The Competition and Markets Authority (CMA) has today published an initial update on its ongoing work to tackle cost of living pressures in groceries with the publication of two reports: an assessment of retail competition in the groceries sector and a review of unit pricing practices across major retailers.
At a time when food and other grocery prices are rising it is crucial that people can be confident that competition is working effectively to keep price rises as low as possible and that people can shop around and compare prices easily and with confidence.
Groceries
Over the past two months, the CMA has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. Looking at the effectiveness of retail competition across the market, this stage of the CMA’s review has focused on the extent to which rivalry between retailers ensures they keep their prices as low as possible and whether consumers can shop around to get the best deals.
Although food price inflation is at historically high levels, evidence collected to date by the CMA indicates that competition issues have not been driving this.
In particular:
Operating profits in the retail grocery sector fell by 41.5% in 2022/23, compared with the previous year while average operating margins fell from 3.2% to 1.8%. This is due to retailers’ costs increasing faster than their revenues, indicating that rising costs have not been passed on in full to consumers.
Consumers are shopping around to get the best deals, and the lowest-price retailers – Aldi and Lidl – have gained share from their competitors. This suggests retailers are restricted in their ability to raise prices without losing business.
However not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores.
Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall.
The CMA’s review so far has focused on overall indicators of effective retail competition. It has not yet examined competition for individual product categories or across the wider grocery supply chain. This will be an important focus for the next phase of its work. Today’s update identifies 10 indicative product categories (including milk, bread, and baby formula) that merit further analysis to gain a deeper understanding of competition and price dynamics. Our choices are not an indication of any provisional concerns that competition for these products is ineffective.
As part of its ongoing work, the CMA could make recommendations to address any competition issues it finds or take a closer look at any areas which justify further scrutiny.
Unit Pricing
At a time when shoppers are looking for the most competitive deals, unit pricing provides critical information to ensure people can compare prices effectively.
The review looked at 11 supermarkets and 7 variety retailers (stores that sell homeware and household goods with a more limited range of groceries) that operate in the UK .
The CMA has found compliance concerns with the Price Marking Order (PMO) amongst all those it reviewed, however for some retailers these were relatively minor. The CMA has identified that compliance is worse amongst some variety retailers.
Some of the problems stem from the unit pricing rules themselves, which allow unhelpful inconsistencies in retailers’ practices and leave too much scope for interpretation. As a result, shoppers may be finding it hard to spot and compare the best deals.
The CMA’s concerns relate to:
Consistency – different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. For example, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag.
Transparency – missing or incorrectly calculated unit pricing information both in store and online. For example, 250ml handwash costing £1.19 but unit priced at £476.00 per 100ml and unit pricing information unavailable online until items were selected.
Legibility – unit pricing information being difficult to read, for example text on labels being too small or shelf edge labels being obscured by promotional information or by shop fittings.
Promotions – some retailers not displaying unit prices for any products on promotion.
In its report, the CMA has set out recommendations on the unit pricing rules and is calling on the government to reform this legislation, to help shoppers spot the best deals. The CMA has also written to those that are not fully complying with the PMO and expects them to make changes to address its concerns or risk enforcement action.
More broadly the CMA is calling on all retailers to give consumers the unit pricing information they need to make meaningful comparisons, particularly for products on promotion, even before any reforms to the PMO are introduced.
The CMA will publish the findings of its consumer research into the use of unit pricing in Autumn 2023.
Sarah Cardell, CEO of the CMA said: With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily.
“We’ve found that not all retailers are displaying prices as clearly as they should , which could be hampering people’s ability to compare product prices. We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action . The law itself needs to be tightened here, so we are also calling on the government to bring in reforms.
“We’ve also looked at how competition is working across the grocery retail market more widely. The overall evidence suggests a better picture than in the fuel market, with stronger price competition between all of the supermarkets and discounters. In the next phase of our work, we will examine competition and prices across the supply chain for the product categories we’ve identified.
“We’ll also continue to monitor the situation to ensure that competition remains effective as input costs start to fall.
More information and full reports can be found on our
Retailers will be forced to provide up-to-date price information as part of new government scheme to call out rogue supermarkets and stations overcharging drivers at the pump.
Motorists will be able to easily compare fuel prices in real time to choose the best prices whilst boosting competition and in turn driving down prices.
Government action after watchdog finds some supermarkets charged drivers 6p more per litre for fuel from 2019 to 2022 – meaning £900m in extra costs across the UK in 2022 alone.
Motorists are being put in the driving seat to find the best fuel prices as the government prepares to force retailers to publicly fess up to how much they are charging at the pump.
In a win for consumers, they will be able to compare prices in real time in any area of the UK, through a new fuel price reporting scheme. Drivers will be able to easily identify those charging fair prices and those failing to pass on savings from falling wholesale costs.
The government will change the law to force retailers to comply by providing up to date price information, which is expected to lead to greater transparency and competition – in turn driving down prices and easing people’s cost of living.
The new scheme will make pricing data available for third parties – paving the way for them to create price comparison apps and websites – supporting the digital economy and helping growth.
The tough action by government follows publication of a Competitions and Markets Authority (CMA) report today showing some supermarkets charged drivers 6p more per litre for fuel. This amounts to £900m in extra costs in 2022 alone – around £75m a month.
New powers will be handed to a public organisation yet to be decided, to closely monitor the UK road fuel market, scrutinise prices and alert government if further intervention is needed.
This is the latest step in the government’s action to ease the cost of living, as part of its efforts to halve inflation this year – one of the Prime Minister’s five priorities. It follows the Chancellor’s roundtable with regulators last week, including the CMA, to ensure consumers are being treated fairly and help those struggling to make payments.
Grant Shapps, Energy Security Secretary, said: “Some fuel retailers have been using motorists as cash cows – they jacked up their prices when fuel costs rocketed but failed to pass on savings now costs have fallen.
“It cannot be right that at a time when families are struggling with rising living costs, retailers are prioritising their bottom line, putting upwards pressure on inflation and pocketing hundreds of millions of pounds at the expense of hardworking people.
“Today I’m putting into action the CMA’s recommendations and standing by consumers – we’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.”
Jeremy Hunt, Chancellor of the Exchequer, said: “It isn’t fair that businesses are refusing to pass on lower prices to protect their profits while working people struggle with balancing their budgets.
“Consumers need to be treated fairly, and so we’re empowering drivers to find the best prices possible for their fuel by taking swift steps following the CMA’s recommendations.”
The CMA’s report found a concerning weakening of competition in the fuel market and an overall increase in retailers’ margins, especially in respect of diesel and with supermarkets the worst offenders (see below).
It also noted a lack of reliable and comprehensive price information available to motorists.
The report recommends the mandatory public disclosure of fuel prices and establishment of a body to monitor the market, which the government has agreed to.
The government will consult on the design of the open data scheme, and market monitoring function this autumn – with changes to the law needed to bring it in. In the interim, the CMA will create a voluntary scheme encouraging fuel retailers to share accurate, up-to-date road fuel prices for publication by August and continue to monitor fuel prices using its existing powers.
The move follows a similar scheme in Germany, which boosted competition amongst fuel retailers. Meanwhile, motorists who shopped around in Queensland, Australia, saved on average $93 per year off the back of a statewide scheme rolled out in the area.
Action to protect consumers announced today follows the government spending nearly £40 billion protecting households and businesses from spiralling energy bills over the colder months – including paying half the typical household bill and saving the average home roughly £1,500 by the end of June.
Meanwhile, with the latest Ofgem price cap coming into effect from 1 July, families will see their yearly energy bills fall by around £430 on average. On top of this, the government is also providing additional support to the most vulnerable, with an extra £150 for disabled people and £900 for those on means-tested benefits.
CMA sets out plan to help drivers get more competitive fuel prices
A new fuel finder scheme to enable drivers access to live, station-by-station fuel prices on their phones or satnavs would help revitalise competition in the retail road fuel market, the CMA said yesterday
Increased supermarket fuel margins led to drivers paying an extra 6 pence per litre
Instant access to prices via fuel finder scheme should drive down prices and help people find cheapest fuel
New monitoring body needed to hold industry to account
Asda fined £60,000 for failure to provide information when required
The scheme would be made possible by new compulsory open data requirements and backed by a new ‘fuel monitor’ oversight body. The proposals are the key recommendations by the Competition and Markets Authority (CMA) to UK government following its in-depth study into the road fuel market which found a weakening of competition in retail since 2019.
At present, retailers only provide information on prices at the petrol stations themselves. This makes it hard for drivers to compare prices and weakens competition. The fuel finder open data scheme would need statutory backing through legislation to ensure fuel retailers provide up-to-date pricing and make that available to drivers in an open and accessible format that can be easily used by third party apps such as satnavs or map apps, through a dedicated fuel finder app, or a combination of both.
The fuel monitor would monitor prices and margins on an ongoing basis and recommend further action if competition continues to weaken in the market. As the UK transitions to net-zero the demand for petrol and diesel will reduce. The fuel monitor will help us understand the impact of this on vulnerable consumers that remain dependent on petrol and diesel for longer, as well as those living in areas with limited choice of fuel stations.
The fuel monitor will ensure ongoing scrutiny of retail prices for petrol and diesel. We observed that following the interim update issued by the CMA in May 2023, the average price of road fuel fell in large parts of the UK. Over the last year, the CMA has investigated the road fuel market in detail and reached the conclusion that competition is not working well and greater transparency in pricing is needed to improve consumer confidence and bring down prices for drivers.
There is no evidence to suggest that there has been cartel behaviour taking place and the CMA has no plans to open an enforcement case.
The report found that:
From 2019-22, average annual supermarket margins have increased by 6 pence per litre (PPL)
Increased margins on diesel across all retailers have cost drivers an extra 13 PPL from January 2023 to the end of May 2023
With greater transparency and shopping around as effectively as possible, the driver of a typical family car could save up to £4.50 a tank within a 5-minute drive
Motorway service stations are charging around 20 PPL more for petrol and 15 PPL more for diesel compared to other fuel stations
Supermarkets are generally the cheapest places to buy fuel, with Asda typically the cheapest of those. This has anchored prices in the past. The CMA found that in 2022, Asda and Morrisons each made the decision to target higher margins.
Asda’s fuel margin target in 2023 was more than three times what it had been for 2019, while Morrisons doubled their margin target in the same period. Other retailers, including Sainsbury’s and Tesco, did not respond in the way you would expect in a competitive market and instead raised their prices in line with these changes. Taken together this indicates that competition has weakened and reinforces the need for action.
Diesel prices have been slow to drop in 2023, partially down to Asda ‘feathering’ (reducing pump prices more slowly as wholesale prices fell) its prices and other firms not responding competitively to that. As a result, the CMA estimates that drivers have paid 13 PPL more for diesel from January 2023 to the end of May 2023 than if margins had been at their historic average.
Sarah Cardell, Chief Executive of the CMA, said: “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this.
“Drivers buying fuel at supermarkets in 2022 have paid around 6 pence per litre more than they would have done otherwise, due to the four major supermarkets increasing their margins. This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.
“We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices so retailers have to compete harder for their business.
“This is why we are recommending the UK government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time. This would end the need to drive round and look at the prices displayed on the forecourt and would ideally enable live price data on satnavs and map apps.
“Given the importance of this market to millions of people across the UK this needs to be backed by a new fuel monitor function that will hold the industry to account. As we transition to net zero, the case for ongoing monitoring of this critical market will grow even stronger, so we stand ready to work with the UK government to implement these proposals as quickly as possible.”
Local factors also contribute to how much drivers pay at the pump. The CMA identified that there are significant price differences in local areas, and that the difference between the highest and lowest prices in local areas has increased as average fuel prices have risen.
Lower prices are typically associated with having a supermarket retailer nearby, and where there are no supermarkets, for example, in remote areas, fuel retailers are likely to have higher costs and prices are likely to be higher. The fuel finder scheme will be important to help people find the best deal possible but it is essential that the monitoring function keeps a close eye on local variations in prices.
The price premium at motorway service stations has grown in real terms since 2012, and price variation on motorways is low, due to limited competition between service stations. A fuel finder scheme would allow drivers an easy way to see where they can find cheaper fuel in the area if they come off the motorway.
The CMA has also imposed fines totalling £60,000 on Asda for failing to provide relevant information in a timely manner.
Asda received two fines, each of £30,000 (the statutory maximum), for:
Sending a representative to attend a compulsory CMA interview who was not equipped to provide evidence on certain topics the CMA had identified in advance.
Failing to respond completely to a compulsory written request for information.
Asda has now provided the CMA with the required information.
The CMA also found that “increased margins on diesel across all retailers have cost drivers an extra 13 PPL from January 2023 to the end of May 2023.”
The organisation goes on to say:
“Over the last year, the CMA has investigated the road fuel market in detail and reached the conclusion that competition is not working well and greater transparency in pricing is needed to improve consumer confidence and bring down prices for drivers.”
However, the CMA could find “no evidence to suggest that there has been cartel behaviour taking place and the CMA has no plans to open an enforcement case.”
The CMA’s study on road fuel prices identified a reduction in competition amongst the supermarkets:
“Supermarkets are generally the cheapest places to buy fuel, with Asda typically the cheapest of those. This has anchored prices in the past. The CMA found that in 2022, Asda and Morrisons each made the decision to target higher margins. Asda’s fuel margin target in 2023 was more than three times what it had been for 2019, while Morrisons doubled their margin target in the same period.
“Other retailers, including Sainsbury’s and Tesco, did not respond in the way you would expect in a competitive market and instead raised their prices in line with these changes. Taken together this indicates that competition has weakened and reinforces the need for action.
“Diesel prices have been slow to drop in 2023, partially down to Asda ‘feathering’ (reducing pump prices more slowly as wholesale prices fell) its prices and other firms not responding competitively to that. As a result, the CMA estimates that drivers have paid 13 PPL more for diesel from January 2023 to the end of May 2023 than if margins had been at their historic average.”
The CMA is calling for the compulsory release of price data by fuel retailers so that apps can be developed which allow drivers to check what is the best price in their local area.
It also wants to see a new monitoring body to hold the industry to account.
According to the CMA “motorway service stations are charging around 20 PPL more for petrol and 15 PPL more for diesel compared to other fuel stations.”
Scotmid is giving customers across Edinburgh the chance to make the perfect Chippy Tea at home all year round, after making new supplier We hae meat’s, chippy style battered pork sausage and battered black pudding products a permanent listing in 125 of its stores across Scotland.
These sought after Scottish delicacies, produced by the Ayrshire-based business, are now available from Scotmid’s stores across the city.
The listing’s long-term success follows the family run business’s recent accolade of being named a ‘Scotmid Scottish Favourites’ winner – a competition run in partnership with Scotland Food and Drink launched during Scottish Food and Drink Fortnight in 2022. After a triumphant three-week promotional listing back in February, which proved a triumph with customers, the products are back by popular demand on a permanent basis.
Jessica van Tromp, Local Sourcing Manager at Scotmid said: “Our customers love these products! We hae meat’s commitment to excellence has paid off and we can’t wait to see what the future holds for this exciting Scottish business.”
Founded in 2007, We hae meat is run by Carlyn Paton and her husband Alex, on the family farm in Ayrshire’s beautiful Girvan Valley. With a commitment to developing products that are made from traditional recipes, while minimising their impact on the environment, the business implemented a comprehensive carbon management plan aimed at reducing on-site emissions in 2016.
On securing the permanent listing, Carlyn Paton said: “Knowing our products are available in over 100 Scotmid stores is a huge achievement for us.
“We are so proud that our family-run, sustainable-focused business can provide tasty products to more customers than we’ve ever reached before across the country.”
Since then, prioritising sustainability and showcasing dedication to operating in an environmentally responsible manner has been We hae meat’s focus. A notable achievement in its sustainability efforts is the on-site renewables plant, which plays a pivotal role in reducing its carbon footprint.
This plant generates 100% of We hae meat’s hot water requirements and 80% of its electricity demands. By harnessing renewable energy sources, the company not only contributes to a greener future but also showcases their innovation and forward-thinking approach, ultimately providing stores and customers with convenient, tasty and sustainable products.
We hae meat recommends that their chippy-style products are eaten with oven chips and peas – but the question stands on if they should be mushy or not!
Rizza’s of Huntly is proud to announce its victory in the Scotmid Scottish Favourites competition for the second year in a row, earning them the opportunity to showcase their latest creation, Scottish Tablet Ice Cream, in Scotmid stores across Edinburgh.
As one of the five Scottish businesses chosen to win the Scotmid Scottish Favourites competition, Rizza’s exemplifies Scotmid’s commitment to supporting local producers and promoting Scottish sourcing. Rizza’s prides itself on using Scottish ingredients whenever possible, bolstering the Scottish supply chain. The tablet used in their ice cream is sourced from Aldomak, a Glasgow-based supplier and fellow Scotmid partner.
Aldomak, a family business with 80 years of expertise, crafts their ‘Totally Tempting Tablet’ in small batches using traditional family recipes dating back to the 1900s. The collaboration between Rizza’s and Aldomak share a dedication to quality and authenticity.
Donald Morrison, Director at Rizza’s, said:“Winning last year’s competition allowed us to sell our ice cream throughout Scotland reaching new customers who hadn’t heard of us before – we even had some get in touch afterwards asking when we would be in store again!
“We are obviously delighted that we have secured a second listing, this time for our Scottish Tablet Ice Cream. We look forward to hearing what Scotmid customers think of it!”
Jessica van Tromp, Local Sourcing Manager at Scotmid, praised the winners, saying: “Our competition celebrates local Scottish producers, and we are always impressed by the quality of products available in our country.
“Rizza’s Scottish Tablet Ice Cream is an exceptional product that we think will excite customers across the country. We can’t wait to see it in Scotmid stores!”
The other Scotmid Scottish Favourites competition winners from this year are:
We hae meat: Chippy-style battered sausage and battered black pudding
