Suppliers Aldi Urged To Prepare For A ‘No Deal’ Brexit

Stephen McKay / Aldi, Central Park

Aldi, the discount supermarket giant, has reached out to its suppliers over some contingency measures that may be required in the case of a “no deal” Brexit as concerns regarding possible shortages intensifies.

According to an investigation that was launched by the Sunday Times, last month, the German retailer asked its suppliers some questions regarding what proportion of EU employees they employ and the implications of the tariffs of the World Trade Organisation (WTO) for their products.

Aldi has more than 700 stores in the United Kingdom. It said that it was eager to work with the suppliers of the company “to help understand the potential implications” and to “mitigate any negative impacts” in the case of a no-deal scenario.

The warning of shortages in the event that the United Kingdom is not able to reach an agreement with the European Union has alarmed some of the major industries of the United Kingdom in recent weeks.

Recently, the head of NHS England disclosed that “extensive” planning is being undertaken to prevent shortages of medicine and doctors once a no British-EU deal is reached.

Fresh research from the London School of Economics (LSE) insinuated that everyday dairy products including yoghurt, cheese, and butter could likely become luxury items in Britain after Brexit.

While last week, Dominic Raab, the new Brexit secretary, suggested that it was the role of the grocery industry to make sure that there were “adequate food supplies.” However, the British Retail Consortium has since hit back at Raab by saying that stockpiling was “not a practical response.”

The Brexit Secretary has also said that it would be “wrong to describe it as the government doing stockpiling but we will look at this issue in the round and make sure that there is adequate food supply.”

The event of a no deal being reached between Brussels and the United Kingdom next year seemed more possible after Michel Barnier, the EU’s lead negotiator, ruled out customs union plans of Prime Minister Theresa May.