In the lead-up to the UK general election and the release of critical economic data, there was a notable surge in stockpiling among UK retailers and manufacturers, according to delivery expert ParcelHero. The period from 17 June to 30 June saw a significant increase in stockpiling activities as businesses braced for potential disruptions.
Data from the Office for National Statistics (ONS) showed that nearly 10% of businesses engaged in stockpiling during June, a substantial rise from the 4.9% of retailers and 11.1% of manufacturers in January. By late June, 15.3% of currently trading retailers and 20.7% of manufacturers reported stockpiling.
ParcelHero noted that this is the highest proportion of companies admitting to stockpiling since the ONS introduced the question in its “Business insights and conditions survey” in February 2021.
David Jinks, head of consumer research at ParcelHero, emphasised the importance of robust supply chains in the face of such uncertainty. “As companies prepare for challenging times or try to combat supply chain issues, they may store large quantities of goods for future use. That means they can increase product availability when demand escalates,” Jinks explained.
“The last major period of stockpiling in the UK was in preparation for Brexit. Retailers concerned about obtaining products from the European Union and manufacturers worried about the availability of components built up significant stocks to prepare for the impact of Brexit regulations,” Jinked continued.
The recent stockpiling surge coincided with the previous UK government’s launch of the ‘Prepare’ campaign website, which advises citizens to gather supplies like food, water and batteries for potential emergencies, as reported by Logistics Manager in May.
ParcelHero observed, ‘the data gives an interesting insight into UK companies’ concerns about the uncertainty of the election period and the ongoing impact of inflation and high interest rates.’
Jinks suggested that some companies might have expected a positive shift in consumer sentiment post-election, especially if Labour won, driving preparations for increased demand. June also brought economic pressures, such as inflation reaching the Bank of England’s 2% target without an expected interest rate cut, leaving retailers and manufacturers in a difficult position.
Ultimately, Jinks emphasised the importance of robust supply chains and strong sales strategies, both in-store and online, to navigate economic uncertainty. He referenced ParcelHero’s report, “2030: Death of the high street,” discussed in Parliament, advocating for an omnichannel retail approach as key to success in turbulent times.
