London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Tesco and Iceland bosses warn over Christmas supplies

Tesco and Iceland bosses warn over Christmas supplies

The boss of supermarket Iceland says the supply chain chaos is getting worse, just as retailers start planning for the key Christmas period.

Richard Walker told the BBC he estimated the UK's shortage of lorry drivers was now about 100,000, with the company itself about 100 short.

Tesco boss John Allan said "there may be some shortages", but people should not "over-dramatise" and panic-buy.

"It's very easy to make a drama out of a modest crisis," he told the BBC.

The continuing shortage of HGV drivers is starting to make retailers nervous, as they are about to start planning for the key trading period.

The government said there was a "highly resilient" food supply chain and it was taking measures to tackle the driver shortage.

But Mr Walker said: "The reason for sounding the alarm now is that we've already had one Christmas cancelled at the last minute.

"I'd hate this one to be problematic as well," he added. "We start to stock-build from September onwards for what is a hugely important time of year," he added.

"We've got a lot of goods to transport between now and Christmas and a strong supply chain is vital for everyone."

"The driver shortage is impacting the food supply chain on a daily basis and leading to shortages on the shelves," Mr Walker said.

"We've had deliveries cancelled for the first time since the pandemic began, about 30 to 40 deliveries a day."


The simple solution he said, was for heavy goods vehicle drivers to be added to the UK's skilled workers list, to help get drivers recruited from overseas.

"These men and women, these HGV drivers, have kept the show on the road for 18 months during the pandemic and it's criminal that we're not viewing them as skilled workers," he told the BBC.

Asked if Brexit is responsible for the supply chain problems, Mr Walker responded: "I think so, but it's a 'self-inflicted wound' rather than an inevitable consequence of Brexit, caused by the government's failure to appreciate the importance of HGV drivers and the work they do for us."

Incentive schemes


Tesco chairman Mr Allan echoed the warnings, but felt the situation was unlikely to develop into a crisis. "There may be some shortages at Christmas, but I wouldn't want to overdramatise the extent to which that would be the case."

He said that normally, the supermarket industry would start building stocks now in readiness for Christmas, but "at the moment we're running very hard just to keep on top of the existing demand and there isn't the capacity to build stocks that we would like to see".

He said Tesco, like all its rivals, was "very short of drivers".

Firms from a number of sectors in the UK have been battling with a supply chain crisis due to a shortage of lorry drivers.


Steve Murrells, chief executive of the Co-operative Group, warned that current food shortages were "at a worse level than at any time I have seen".

He told the Times that the Co-op had significantly reduced its range of some products to help serve customers.

Mr Murrells said the disruption to supply had been driven by "Brexit and issues caused by Covid" and the firm was retraining staff as lorry drivers to help fill vacant roles.

A government spokesperson said: "We have a highly resilient food supply chain. We have well-established ways of working with the food sector and are working closely with them to ensure businesses have the labour they need.

"We have put in place a package of measures to tackle the HGV driver shortage. Additionally, our Plan for Jobs is helping people across the country retrain, build new skills and get back into work. As part of this, we are streamlining the process for people to get their HGV licence."

Tesco has been offering lorry drivers a £1,000 joining bonus amid a chronic shortage of drivers in the industry.

Other companies are also understood to be offering similar incentives for HGV drivers after disruption to supply chains led to product shortages. Morrisons said it was working on schemes to train staff to become lorry drivers.

On Friday, Logistics UK, which represents freight firms, and the British Retail Consortium (BRC) wrote to the government to plead for new measures to alleviate the problem.

Toy trouble


Problems with shipping goods in from overseas could also hit Christmas, according to toy retailer boss Gary Grant.

The chairman of The Entertainer told the Mail Online that he had to contend with shortages of containers to bring goods in from Asia and a jump in shipping costs.

"What is unique to us is that Christmas is a fixed date, so we are under extreme pressure at the moment to move as much stock as we can, but are significantly behind with the shipment of products," he said.

"There's not a shortage of toys, but what will happen as when we get nearer to Christmas, the suppliers will not have back-up stock that we've previously relied upon. So the range of stock we have may be narrower."

He warned that popular toys such as Paw Patrol, Barbie and Rainbocorns could be in short supply.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×