|
Re: Coronavirus
Supermarkets have plans to ration food by working with suppliers to cut back on variety - focusing instead on their supplies of staple products.
The new supermarket contingency plans have been detailed by City analyst, Bruno Monteyne, from the investment firm Alliance Bernstein.
According to Mr Monteyne panic buying is leading to empty shelves and there could be food riots."
But he adds that retailers have "ready-made plans" to deal with disruption and move to "feed-the-nation" status.
Mr Monteyne wrote: "Yes, it will be chaotic but the industry will reduce complexity to keep the country fed."
He added that Tesco has practised simulation exercises, with different teams preparing responses to a flu pandemic.
He also said supermarkets and their suppliers would work together to agree "a major reduction in ranges," adding that the big grocers were likely "to be drawing up lists right now of which products will be prioritised".
Mr Monteyne says he would expect the army to be called in, in the event of an acute food shortage.
|