A round-up of Supermarket news and gossip
THE billionaire peer who lent labour £2m has quit the front bench. Lord Sainsbury of Turville, the science minister, who has been questioned by the police in the cash-for-peerages inquiry, has left the Government. He stated that “the time was right to get back to all my other business and charitable activities.”

Ahold, the Dutch retail conglomerate, has announced plans to sell off non-core business including US Foodservice, the American food delivery firm where fraudulent accounting nearly led to break-up of the group in 2003. The company intends to return £1.34bn of the divestment to shareholders.

Sainsbury is trying out its convenience store format at a motorway service station on the M11, near Stansted.

Curfews on late night lorries may be eased to reduce jams.

Supermarkets lead the way as ministers prepare to risk a protest over noise. Ministers say thousands of lorries would be removed from the roads in peak periods if local authorities allowed deliveries from 5am. British shoppers are increasingly thinking ‘green’ claims Sainsbury, with more customers now checking if a product can be recycled.

Five years ago M&S was the largest childwear retailer in Britain but lost out after rivals including Next, Asda and Tesco developed ranges.

M&S signals that some of its market share could be on its way back.

Traditional loaves of bread could be replaced by packs containing just four slices under new EU ruling. Apart from wines and spirits, there could be a free-for-all on sizing for items like ice-cream, frozen food, detergents, pet food, low alcohol drinks shampoo and toothpaste.

English apples are making a comeback, with consumers increasingly preferring the flavour to the more bland taste of some imported varieties. Chinese growers have begun planting English varieties to meet the demand for cheaper produce. Morrison is facing legal action from 650 former distribution staff in a review over redundancy pay.

The Competition Commission has written to 40 top supermarket suppliers asking for information on their terms of business in an attempt to winkle out unfair pricing agreements. Supermarkets have started a new round of petrol price wars after Asda dropped the cost of unleaded petrol to its lowest level since January 06. Sainsbury’s and Morrisons also signaled that they would match the pump prices at all of their outlets. Tesco is almost certain to be forced into line with its rivals. Sainsbury’s is also ending the postcode petrol price lottery and has decided on a national price cut, to prevent any local variation.

Morrison’s has returned to profit. What it now has to decide is where to position itself with regard to the likes of Tesco and Asda. Shares in Marks and Spencer surged 6.3% to a ten-year high, as the retailer announced its biggest expansion plan in a decade.

John Lewis is stepping up its store-opening programme with plans to spend £350mon expanding its presence by a third. In its latest figures, John Lewis has stated that the company operates 174 Waitrose supermarkets. Asda’s restructuring is bearing fruit, as it reported a second consecutive quarter of sales growth.

In Paris the small shops seem to be winning their battle with the supermarkets. The situation is aided by President Chirac striving to preserve the local shopkeepers.

The Co-operative Group has become the first to move carbon offsetting from the internet into the high street, making it an easy purchase for people who want to tackle climate change. Customers of its travel business, Travelcare, will be able to counter the environmental effects of their holiday flights by buying carbon offset at its branches.

W H Smith has made a move for a presence next to Britain’s motorways. With plans for 50 new outlets in service areas, the retailer will occupy 48 sites owned by Moto, plus two at Extra-branded sites owned by Swayfield.

GEMINI