LONDON, Jan 10 (Reuters) - Sainsbury's is in regular contact with the UK government about the disruption to shipping in the Red Sea, the supermarket group said on Wednesday, in a sign of the nervousness of major importers about securing supplies.
Sainsbury's, Britain's second largest grocer after Tesco , owns a large general merchandise business, Argos, and also sells clothing. Most of its general merchandise products are imported.
Global shipping firms are avoiding the Red Sea, and so the fastest shipping route between Asia and Europe through the Suez Canal, due to attacks on vessels by the Iran-backed Houthi militant group. They are diverting ships around Africa's Cape of Good Hope, adding two weeks to journey times and extra costs.
"We're just keeping a very close eye on it, with a focus on getting products through that customers want and containing cost risk," Sainsbury's CEO Simon Roberts told reporters after the group updated on Christmas trading.
"We're making sure that we plan the sequencing of product from Asia Pacific, so that we get products in the right order," he said, noting that long term contracts with shippers "mitigate any cost impact as far as possible".
Roberts said Sainsbury's was having conversations on the Red Sea issue with the UK government.
"We're on regular calls there to make sure that the latest intel ... is understood," he said.
Last week, British clothing retailer Next said its sales growth would likely be moderated if the disruption continues.
However, discount chain B&M said on Tuesday it did not expect any material impact from the disruption.
Retailers worldwide are stocking up on goods before China's Lunar New Year holiday and seeking air or rail alternatives to transportation via the Red Sea. (Reporting by James Davey and Muvija M Editing by William James and Mark Potter)
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