Research from consultants Cap Gemini Ernst & Young shows that retailers' reluctance to co-operate with suppliers and each other is costing everyone money. Cap Gemini head of retail Richard Hull said retailers had not really explored the full potential of sharing warehousing and collaborating more closely with competitors as well as with supply chain partners on distribution. "Yes, there is some backhauling, and there are some shared facilities for things like fruit," said Hull. "But there are too many double costings going on. There are huge opportunities for supply chain savings over and above ECR initiatives. But it's going to be a bitter pill to swallow." The report, State of the Art in Food: the changing face of the food industry, draws its conclusions from interviews with senior level executives in grocery manufacturing and retailing from 19 countries. The report also states that online sales will represent no more than 5% of the global food business in 10 years, significantly lower than earlier projections. Many companies have floundered in attempts at multichannel retailing, it states. {{NEWS }}