Opinion: Tesco should reverse its decision to quit BRC

So it’s a great shame that Tesco is poised to end its membership of trade association the British Retail Consortium (BRC).

Tesco is itself emblematic of the transformation of retail as new business models are sought.

Its acquisition of wholesale titan Booker creates a powerhouse with interests right across the food market, serving business customers as well as consumers.

The “new chapter” that the deal represents was given by Tesco as its reason for quitting the BRC. “As we start operating as both a retailer and wholesaler, we are looking at a new set of issues,” the grocer explained.

“The BRC may not be perfect. But it is nevertheless a vital lobbying voice for the industry and its job will be made harder by Tesco’s withdrawal”

That’s no doubt true, but it does not change the fact that Tesco remains the UK’s biggest retailer and one of the largest globally.

It may face new issues, but it still shares many of the same ones as its retail peers, whether it’s the burden of business rates, the implications of Brexit or the changes being wrought by the adoption of new technology and new shopping habits.

In other words, the sort of issues on which the BRC attempts to influence policymakers.

Tesco has traditionally taken a leadership role in retail. It has longstanding links with the BRC and has played an active part – its former corporate affairs director, Lucy Neville-Rolfe, was a mainstay of the trade body and served as its deputy chair.

It should continue to play its part. Even before it took over Booker, Tesco employed almost 500,000 people in its retail operations. And, now that it has tied up with Booker, many of the businesses it supplies will be independent shop owners.

In the past, one criticism sometimes levelled at the BRC was that it was too representative of the biggest retailers, notably the grocers.

Tesco’s new span of retail interests means that it is in a unique position to reflect the priorities of businesses big and small, building bridges and helping create a common agenda on the issues that affect the entire industry. That would help the BRC, which would benefit retail, which would benefit Tesco.

Without the support of Tesco, the BRC loses the financial, intellectual and practical backing that comes from the retail giant’s involvement.

The BRC may not be perfect. It may not always win the victories retailers would like. But it is nevertheless a vital lobbying voice for the industry and its job will be made harder by Tesco’s withdrawal.

Tesco’s membership of the BRC runs until July. There’s still time for it to reconsider leaving. It should.

Hilco should give Homebase a fighting chance

Retail restructuring specialist Hilco may not be everybody’s cup of tea, but it could be a good owner of troubled Homebase.

Many of Homebase’s problems under the ownership of Bunnings have been self-inflicted.

But the continued resonance of the brand – despite Bunnings’ efforts – the expertise brought from B&Q by newish boss Damian McGloughlin and the backing of Hilco represent an opportunity for the DIY retailer to address the executional issues that have contributed so much to its travails.

There may be some pain along the way, but after winning an award for ‘turnaround of the decade’ for its work with HMV, Hilco is probably Homebase’s best hope.