London Daily

Focus on the big picture.
Sunday, Sep 27, 2026

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
Civil Aviation Authority Launches Review of Air Traffic Systems Following Digital Failure
X Reports First Increase in UK Revenues Following Advertiser Boycott
Shetland Islands Council Approves £400 Million Inter-Island Tunnel Project
Foreign Secretary Ed Miliband Warns Iran Against Hostile Activities on British Soil
UK Ministers Concede Chagos Islands Sovereignty Agreement Terminated After US Opposition
More in Common Poll Projects Hung Parliament with Labour Leading and Reform UK Gains
Prime Minister Andy Burnham Defends Economic Strategy as Public Finances Face Headwinds
Tony Blair Urges Government to Set Long-Term Goal of Rejoining the European Union
Prime Minister Andy Burnham Pledges Universal Free Social Care Funded Through General Taxation
UK Diesel and Petrol Prices Surge Near All-Time Highs Amid Middle East Energy Volatility
Analysis of Reform UK conference highlights deep political divisions over welfare and immigration
Bangladesh garment exports to the United Kingdom reach $915 million in early fiscal year
Royal Navy begins sea trials for new HMS Agamemnon hunter-killer submarine
New report suggests UK data centre expansion will create far fewer jobs than predicted
Major weekend closures announced for London Underground Piccadilly and Central lines
NHS leaders call for emergency winter funding to combat staffing shortages and rising illness
Far-right activist Daniel Thomas charged following alleged slashing of migrant dinghy
Home Secretary orders urgent review of border security following rise in small boat crossings
Prime Minister Andy Burnham to address Labour Party conference amid calls for long-term infrastructure plan
UK Treasury and Bank of England warn of rising inflation risks amid Middle East tensions
Royal Navy Diving Squadron Honoured for Global Bomb Disposal Efforts
UK State Pension Set to Approach £13,000 Per Year Under Triple-Lock
Rolls-Royce Wins Multi-Million-Pound Engine Contract with Philippine Airlines
TfL Questions Future of Heathrow Express Amid Proposed £33 Billion Expansion
Ed Miliband Warns Iran Against Hostile Operations on British Soil
S&P Global Manufacturing Index Signals Stabilization Amid Rising Fuel Costs
Prime Minister Andy Burnham Launches National Centre for Information Defence
UK Food and Drink Trade Deficit Surges to £21.1 Billion
OECD Upgrades United Kingdom Economic Growth Forecast to 1.1 Percent
Bank of England Faces Policy Challenges as Energy Prices Push Inflation Projections Higher
IMF Urges UK and Major Economies to Reduce Public Borrowing and Debt
UK Government Concedes Chagos Islands Sovereignty Deal is Dead Following Trump Opposition
Prosecutors Seek More Than 10 Years in Prison for Former DUP Leader Jeffrey Donaldson
UK Provided £66 Million in Emergency Security Funding for Mosques After Southport Disorder
Manston Inquiry Examines Role of Government Decisions in 2022 Overcrowding Crisis
Justice System Capacity Pressures Raise Concerns Over Release of Sex Offenders
UK Food and Drink Trade Deficit Widens to Record £21.1 Billion
UK Releases Climate Security Findings Previously Withheld Under Starmer
TalkTalk Races to Sell Consumer and Broadband Businesses as Administration Threat Looms
NHS Bodies Impose Minimum Two-Year Waits for ADHD and Autism Assessments
Andy Burnham Pledges £210 Million to Revive Boarded-Up High Streets
UK Borrowing Reaches £18.3 Billion in August Ahead of Autumn Budget
Vistry Cuts Profit Outlook as Losses Deepen and Private Home Sales Weaken
Reported Assaults on Great Britain’s Railways Rise Sharply
Far-Right Activist Daniel Thomas Arrested After Channel Dinghy Slashing
Ukrainians in Britain Face Greater Homelessness Risk as Host Payments Are Cut
Scottish Drug Deaths Rise as Synthetic Opioids Spread
UK Diesel Prices Approach Record High as Energy Costs Intensify
UK Food and Drink Trade Deficit Widens to Record £21 Billion
Britain’s Largest Planned AI Supercomputer Delayed by Power Grid Constraints
×