Business

Asda charters freighter with festive items amid supply chain crisis


Asda has revealed it has chartered its own freighter to ensure key festival items such as toys, clothing and decorations reach its stores, in the latest example of such events. extreme measures retailers are taking to mitigate supply chain problems before Christmas.

The supermarket revealed in a trading update on Monday that sales fell 0.7% in the three months to October 31, saying the ship carrying 350 containers of items from East Asia was the The company’s first private vessel.

Asda said it has also stocked extra turkeys and pigs in blankets in stores and is building up supplies of pies, candies and puddings to address issues in the final weeks before Christmas Day.

It said sales in the summer quarter fell year-on-year, when spending on homes and gardens was strong as families adjusted to cramped living conditions.

With growing anxiety about the spread of the Omicron variant of Covid-19, which has raised concerns about more street congestion, Asda also said it has increased the capacity of its delivery service. at-home groceries rose to 1 million in the last week before Christmas, up from 765,000 in the same period last year.

The measures come as retailers pull back stops to keep stock in store amid concerns over Christmas deliveries. A shortage of qualified lorry drivers, disruptions in the delivery of containers during the pandemic, and production disruptions in East Asia due to Covid restrictions have all made deliveries to the UK. He stalled.

Global supply problems combined with labor shortages in the UK are partly driven by changes to immigration rules after Brexit.

The problems have affected the availability of a wide range of goods, from kitchen appliances and computers to turkeys and pigs in blankets.

Shortages have forced retailers to come up with creative solutions. John Lewis has partnered with other retailers to charter container ships to deliver products and also fly items like Christmas lights. Tesco, meanwhile, has expanded the use of rail transport and offered lorry drivers £1,000 signing fees to secure deliveries.

“We know what Christmas means,” said Mohsin Issa and Zuber Issa, two billionaire brothers who bought a majority stake in Asda this year in partnership with private equity firm TDR Capital. to its customers, especially after some missed out on celebrations with friends. and family last year.

“Our colleagues have pulled out all the stops over the past few months to make sure customers can get their favorite festive products in Asda and enjoy the Christmas they deserve.”





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