Tesco cuts key products from online shopping range
14 October 2016 - 10:23 by Simon Crisp
The tumbling value of the pound is starting to have an impact on the price of products available to UK consumers via safe shopping online, with Tesco announcing that it is no longer selling a number of items supplied by Unilever, according to BBC News.
While customers can still head to the retailer’s real world stores and buy items such as Marmite and Hellmann’s Mayonnaise, the availability of these products on Tesco’s official site has been put on hold until the dispute can be resolved.
This issue has arisen as a result of Unilever choosing to increase the wholesale prices of many major brands in order to account for the increased costs it is facing in the wake of Brexit. And with the Sterling hitting a new low against the Euro and US Dollar this week, there are no signs of this state of affairs changing in the short term.
Tesco’s decision may, ultimately, be echoed by other retailers since analysts believe that it is unlikely the supermarket giants will want to put up the prices of their branded products and risk becoming less competitive in an already hotly contested marketplace.
There are also fears that if prices are ultimately going to rise, the main beneficiaries will be budget chains like Aldi and Lidl, which have already made significant gains in the post-recession period.
Experts warn that consumers will have to face up to the fact that prices are going to rise across a range of products. And items like smartphones and other electronics have already become more expensive since the referendum result was announced.
The cost of food has actually fallen in the past two years, with supply exceeding demand. But whether purchased in store or via safe shopping online, this is set to change.