What is being done to curb supermarket price rises?
Supermarket executives recently refuted allegations of profiteering during a rigorous questioning by a select committee in the House of Commons, which is currently investigating food price inflation.
Under the guidance of Chair Darren Jones MP, the leaders of three major British supermarkets expressed their belief that they were actively working to alleviate the burden of rising food costs, despite their companies reporting record profits.
Gordon Gaya, representing Tesco, informed the Business and Trade Committee that, although the company's profits rose from £1.6 billion to £2.03 billion in the 2017/18 financial year, their profit margin had actually decreased by 7%. Gaya emphasized the importance of public awareness in understanding this fact. He further stated that Tesco was currently operating in its most competitive state ever, as MPs inquired about the measures taken by supermarket executives to assist customers during the ongoing cost-of-living crisis.
David Potts, CEO of Morrison's, echoed this sentiment by expressing that his company had never been closer to Aldi and Lidl in terms of competitiveness.
Kris Comerford, representing ASDA, revealed that the retailer's adjusted profits had decreased by 25%, highlighting the various initiatives undertaken by the supermarket to maintain affordable prices. Comerford emphasized the efforts made to manage the inflationary pressures in the UK market, including supply chain issues during the pandemic, the weakening pound, increased labor costs, and the impact of the conflict in Ukraine on food and energy prices.
Rhian Bartlett, food commercial director at Sainsbury's, acknowledged the significant impact of rising costs on the standard of living for their employees. She emphasized that Sainsbury's had allocated £560 million to keep prices low, combat inflation, and minimize the financial burden on customers. In the most recent financial year, the company recorded lower profits at £690 million, with input costs not being fully transferred to shelf prices.
The British Retail Consortium reported a food inflation rate of 14.6% in June, down from 15.4% in the previous year up to May. The consortium remains hopeful that food inflation will decrease to single digits later this year
Under the guidance of Chair Darren Jones MP, the leaders of three major British supermarkets expressed their belief that they were actively working to alleviate the burden of rising food costs, despite their companies reporting record profits.
Gordon Gaya, representing Tesco, informed the Business and Trade Committee that, although the company's profits rose from £1.6 billion to £2.03 billion in the 2017/18 financial year, their profit margin had actually decreased by 7%. Gaya emphasized the importance of public awareness in understanding this fact. He further stated that Tesco was currently operating in its most competitive state ever, as MPs inquired about the measures taken by supermarket executives to assist customers during the ongoing cost-of-living crisis.
David Potts, CEO of Morrison's, echoed this sentiment by expressing that his company had never been closer to Aldi and Lidl in terms of competitiveness.
Kris Comerford, representing ASDA, revealed that the retailer's adjusted profits had decreased by 25%, highlighting the various initiatives undertaken by the supermarket to maintain affordable prices. Comerford emphasized the efforts made to manage the inflationary pressures in the UK market, including supply chain issues during the pandemic, the weakening pound, increased labor costs, and the impact of the conflict in Ukraine on food and energy prices.
Rhian Bartlett, food commercial director at Sainsbury's, acknowledged the significant impact of rising costs on the standard of living for their employees. She emphasized that Sainsbury's had allocated £560 million to keep prices low, combat inflation, and minimize the financial burden on customers. In the most recent financial year, the company recorded lower profits at £690 million, with input costs not being fully transferred to shelf prices.
The British Retail Consortium reported a food inflation rate of 14.6% in June, down from 15.4% in the previous year up to May. The consortium remains hopeful that food inflation will decrease to single digits later this year