Closer ties for retail, government

A new strategy designed to give Britain's retail sector early warning of new regulations which could affect the way stores do business has been welcomed by the industry, which hailed it as a first step towards improving the lot of a sector which generates more than £200bn a year.

The new Retail Policy Forum was one of a number of recommendations put forward by the Retail Strategy Group, a body set up in 2002 to allow the retail sector and government to work together on a number of issues (such as planning, retail crime, business regulation and regional economic development) affecting this important segment of British industry.

The RSG includes representatives from some of Britain's best-known retailers, such as Tesco, WH Smith, Dixons, New Look, and the two major representative bodies, the British Retail Consortium, and the Alliance of Independent Retailers.

The group also recommended that retailers should get more involved in planning and other regional policy, as well as working more closely with the Home Office on a national strategy to address the issues of retail crime. For example, the Associationof Convenience Stores is creating advice for small retailers on how to prevent retail crime, and while the British Retail Consortium will work on improving processes so that retailers can share information about known offenders.

Trade and Industry Secretary Patricia Hewitt welcomed the report: "Retail is vital to our economy - it employs over 3 million people in the UK and generates over £200 billion in turnover every year - and some of our best retailers are now internationally-respected brands. The Retail Policy Forum will help us maintain the UK's thriving retail industry."

The BRC stressed that the report was the first step towards a better understanding of the needs of the retail sector. "A thriving, competitive retail sector benefits everyone in the country. The work undertaken by Tony De Nunzio, chief executive of Asda and chair of the Retail Strategy Group, and the other retailers involved has played an important role in delivering a better government strategy and understanding of retail," said Kevin Hawkins, director general of the BRC.

"The creation of the Retail Policy Forum and the other recommendations should help Government work with retail to deliver the right policies on the key issues that will make a difference to retail businesses and their customers."