BRC faces prospect of Sainsbury's exit

Concern is mounting among retailers that supermarket group Sainsbury's may withdraw from the British Retail Consortium, potentially dealing a hammer blow to the industry body.

Sainsbury's has not paid its membership fee for this year, although it was due in June. The grocer's membership is thought to cost approximately£400,000 a year and the loss of that sum would be felt keenly by the BRC.

A defection by Sainsbury's would follow Arcadia's recent withdrawal from the BRC, and would impact on the organisation's claim to be able to speak on behalf of the retail sector.

The BRC is already likely to lose out on grocery sector members in the event of a Safeway takeover, because potential buyer Morrison's is not part of the organisation.

BRC director-general Bill Moyes is to meet Sainsbury's directors soon.

According to a source familiar with the situation, the grocer's continued involvement with the BRC will be on the agenda.

'The BRC is dependent on a small number of big retailers. If Sainsbury's pulls out, the BRC will sink without trace,' the source said.

A Sainsbury's spokeswoman claimed the meeting was routine and denied the retailer intends to quit the BRC. She admitted Sainsbury's has not yet paid its subscription because it is 'awaiting the invoice'.

Moyes refused to comment on relations with Sainsbury's. He said: 'If someone on the board of one of our members says they want to meet, we will always accept the chance.'