ABSTRACT
This chapter considers the relationship between supermarkets and their consumers and then examines the role of supermarkets in supply chains. It discusses the vexed question of the ability of supermarkets to instigate ethical practices in the face of market realities. The UK food retail sector is one of the most competitive in Europe, with the six major supermarkets vying for the custom of a defined consumer base. Most supermarkets are public companies and are therefore owned by their shareholders. Most supermarkets now operate on an international level and are subject to the pressures of international currency exchange rates, bank rates and corporation taxes. The interest supermarkets are already taking in local food procurement and organic produce is not just a gesture towards green tokenism. Supermarkets have caught onto the idea that consumers are interested in local and British products and are responding to this interest.
