UK retailers to come together to provide for the nation during the Coronavirus pandemic

The British government has decided to relax the competition regulations in the retail industry to allow retailers to closely work together to keep the country adequately provisioned while it fights the coronavirus pandemic. The spread of the virus and its infection, which so far has killed more than 144 people in the country, has pushed it to near lockdown conditions. People are being advised by the health authorities to stay indoors as far as practicable so as to contain the spread of the virus. While most people have been stockpiling provisions, it is envisaged that the lockdown conditions will continue for some time; hence coordinated measures by the government and the retailers in the country is the requirement of the hour. The decision of the government comes after it met some of the largest retailers of the country and listened to their arguments and deeply contemplated on their implications for more than a week.

Under these regulations, the government will allow supermarkets to stay open beyond their regular working hours. The supermarkets would also be allowed to share distribution depots, delivery vans, sharing staff and data with each other on stock levels under the temporary waiver. The environment secretary of the government, George Eustice, who was the one giving approvals for these waivers, while speaking on these emergency measures also mentioned that the government would be temporarily removing the tax on a plastic bag for groceries purchased online. Packaging food items in plastic bags usually helps reduce the risk of cross-contamination during transportation, especially when they have to be delivered to people who have self-quarantined themselves. The secretary further stated that the government would do everything it can to help the retailers who want to come together in solidarity with the country in this hour of crisis. Such type of measures was taken last in 2012 during the fuel crisis, for the supply of oil and petroleum products.

The relaxation given by the secretary is, however, less than what the industry had been lobbying for. They have been making a case for relaxation of competition rules so that they may work on their contingency plans. The retailers had demanded to lift the restriction on the maximum weight of merchandise each van can carry so than more goods can be moved and delivered in one go. The retailers are of the opinion that the current weight limits are too low and delivery vans have sufficiently more capacity to carry goods without compromising on safety. The retailers also want code regulation in the industry to be relaxed. These codes, which involve operational protocols designed to protect consumers and suppliers from the abuse of large retailers, hampers their ability to make quick changes to adapt to the changing market conditions. Relaxing these codes will offer retailers more flexibility to employ diverse strategies to deal with exogenous situations. Â Finally, the retailers wanted flexibility on minimum wage rules so as to allow its employees to take care of their families in this time of crisis and make up for the lost work later.

In addition to the above relaxations announced by the Environment secretary, several other measures have also been announced by different departments of the government to help the retail industry. The Department for Environment, Food and Rural Affairs stated that it has been working with local authorities across the country to extend working hours, so that food supplies are delivered at the earliest to the customers. This relaxation is particularly important, as in many areas plying of heavy vehicles is prohibited during odd hours. If working hours of drivers and delivery men are extended along with the lifting of this prohibition, more quantity of deliveries can be made in a day than would be possible working under the current state of regulations. The department of transportation has also decided to chip in additionally to the efforts being made by the Department for Environment, Food and Rural Affairs and has agreed to a relaxation of norms related to working hours for drivers. Divers plying such vehicles can now work for 11 hours in one stint instead of the regular 9 hours and work for ninety-six hours instead of the regular ninety hours on a fortnightly basis. All of the above regulations will become effective from Friday the 20^th of March 2020.

A lockdown situation is an infrequent occurrence in a country. It is generally imposed during a war, epidemic or civil unrest like situation. Since the movement of people is restricted during such periods, there is a great difficulty for people to purchase their merchandise and avail of essential public and medical services. Should such a situation last beyond a few days, the government jumps into action and makes adequate arrangements to help people in need. This time around, however, the case is far more acute where even the healthcare workers and the staff of the retailing companies face a heightened risk of being infected by the virus while they discharge their duties.

Earlier this month, the government had, during the presentation of its budget, allocated £30 billion of stimulus spending to small businesses dealing with the depressed business conditions due to the lockdown as a result of the pandemic. This stimulus package, which would lead to direct funds being transferred to people not being able to report to work due to self-imposed quarantine or being sick, would give them sufficient spending power to meet their provision requirements during the lockdown period. Several businesses in the country have already been reporting massive shortfall in demand and revenue and have been estimating billions of pounds in losses from the business already lost in the past one month along with millions of Job losses that threaten to take the country into a deep recessionary phase. This move by the retail industry will not only help the ordinary citizens save on a lot of hardship but will also help protect thousands of jobs and protect millions of countryside farmers who would face a rout if their products and not lifted on time.

The wartime-like situation in the United Kingdom has seen some unprecedented measures been taken by the government and the Bank of England in the recent past to prop up the business sentiments in the country. Among other industry groups, who have also come out to join forces with the government to fight this pandemic menace, is the banking and financial services sector which has offered mortgage payment holidays to its customers who have been reeling under the prevailing harsh trading conditions. The most critical effort in the fight against this virus is being put up by the NHS (National Health Service), which is currently working tirelessly to counter this threat. The sooner the department can contain the pandemic, the faster the country will be able to return to normalcy.