Tesco (LON: TSCO) warns of shortage of fruits, vegetables due to travel ban

British supermarket group Tesco Plc (LON: TSCO) has said that there can be a shortage of some fruit and vegetables in a few days if the transport ban is not lifted.

  • Freight transport across the English Channel has been disrupted after France suspended travel links with Britain due to the rapid spreading of a new strain of Covid-19.
  • The supermarket major said there is enough food till Christmas, and there is no need to panic.
  • Tesco though has also said that there can be reduced supplies of lettuce, cauliflower and citrus fruit.
  • The company in an official statement said that they have been building stocks for the key products ahead of the Christmas and the Boxing Day and are in regular touch with suppliers and hauliers to keep the supply of goods into stores unhindered.
  • It was also reported that Tesco might be exploring routes of ferrying goods directly from Spain and stocks from the UK to deal with the unprecedented disturbance.
  • The company has stated that over 300 Tesco stores will open all through the day until Christmas, while many others will open at 5 AM.
  • Earlier, the other supermarkets have also said that if transport ties with mainland Europe are not speedily restored, there could be a scarcity of goods within days.
  • It is worth mentioning here that almost half of the UK's fruit and vegetables come from Europe, and around 40 countries, including many EU nations, have now banned UK travel.
  • On 22 December 2020, the stocks of the company traded marginally higher by 0.05% from its previous closing, hovering at around GBX 220.30 at 13:24 PM GMT+1.