Safeway is negotiating with its medium and large suppliers to step up its factory gate pricing regime and drive down supply chain costs.
Communications director Kevin Hawkins said he could not predict the extent to which Safeway could eventually adopt factory gate prices, but discounts were being pursued across the supply chain.
He said: "We are having most discussions with medium and large sized suppliers at the moment.
"Clearly if you do pick-ups yourself you can save time and money, but it is a complicated matrix.
"Whether it is worth picking up depends on who is supplying what. There are different rules for ambient and fresh products."
Safeway is also asking its overseas suppliers for reductions for collecting its own products from their factories.
It wants to start picking up from its suppliers in China and Hong Kong by putting in place logistics capabilities there.
Hawkins said: "We would not be setting up a dedicated supply chain overseas but would make our own arrangements with other people to pick up from suppliers.
"It is easier to do collections with UK suppliers, the Far East is more tricky and we are keen to do it there. Our plans are still in their infancy."

{{NEWS }}