Andy Bond, Asda’s chief executive, today branded the government’s planning policy as “the enemy of low cost retailing”. Speaking at a conference about the economic prospects for retailers, Bond said he wanted to “take out everything from my business that creates cost. We do not agree with regulation that adds cost, so a planning regime that stops competition is unfair and mad.” Bond added that “it is an absolute understated travesty that only 20% of consumers can shop at the top four supermarkets so the government are doing their voters a disservice.” And attacking retailers offering discounts, Bond said: “You will not survive as a retail business… and sustain yourself through a downturn. Companies will win and get through the downturn if they lower their costs doing business and by offering their customers value.” Bond said that Asda will continue to look for sites and stores next year, although he would not comment on buying any Woolworths sites. He said: “If opportunities come along, [then we will look at them]. It’s not anything predatory.” Also speaking at the press conference was Doug McWilliams, chief executive of CEBR, which carried out research for the supermarket chain. McWilliams predicted that 2009 will see the retail market consolidate further, with more retailers going out of business. McWilliams said that over the next 12 months, sterling will still be in decline, oil and commodities with fall to much lower levels, and the impact of falling global food prices will mean intense competition in the retail sector, which will bring Bond added: “This won’t be an economic recession which was a blip and then we’ll go back to the way we where before. There will be a new consumer generation; modesty and ‘hate wasting’ will be in the consumer vein making a new era where frivolous is unacceptable, and frugal the norm.” Bond also promised that Asda would be more open on all aspects of its business.
Andy Bond, Asda’s chief executive, today branded the government’s planning policy as “the enemy of low cost retailing”.
Speaking at a conference about the economic prospects for retailers, Bond said he wanted to “take out everything from my business that creates cost. We do not agree with regulation that adds cost, so a planning regime that stops competition is unfair and mad.”
Bond added that “it is an absolute understated travesty that only 20% of consumers can shop at the top four supermarkets so the government are doing their voters a disservice.”
And attacking retailers offering discounts, Bond said: “You will not survive as a retail business… and sustain yourself through a downturn. Companies will win and get through the downturn if they lower their costs doing business and by offering their customers value.”
Bond said that Asda will continue to look for sites and stores next year, although he would not comment on buying any Woolworths sites. He said: “If opportunities come along, [then we will look at them]. It’s not anything predatory.”
Also speaking at the press conference was Doug McWilliams, chief executive of CEBR, which carried out research for the supermarket chain. McWilliams predicted that 2009 will see the retail market consolidate further, with more retailers going out of business.
McWilliams said that over the next 12 months, sterling will still be in decline, oil and commodities with fall to much lower levels, and the impact of falling global food prices will mean intense competition in the retail sector, which will bring UK prices down.
Bond added: “This won’t be an economic recession which was a blip and then we’ll go back to the way we where before. There will be a new consumer generation; modesty and ‘hate wasting’ will be in the consumer vein making a new era where frivolous is unacceptable, and frugal the norm.”
Bond also promised that Asda would be more open on all aspects of its business.
noella.piokivlehan@rbi.co.uk
