Supermarket bosses deny profit despite food inflation

Wednesday, June 28, 2023

Supermarkets deny profit maximisation amid rising food inflation

"We have not made more profit year-on-year. We have actually made 7 per cent less profit versus our last financial year. It's important to be clear on that from the outset." - Gordon Gafa

Tesco chief Gordon said the supermarket's sales were higher but lower, with profits down seven per cent.

Supermarket chiefs at Tesco, Asda, Morrisons and Sainsbury's were surveyed by MPs about inflation as the latest figures fuelled hopes that price increases have peaked.

Last week the Office for National Statistics published figures showing that food prices dropped somewhat but remained high at 18.4 percent.

Supermarkets are under increasing pressure to pass on savings on wholesale items to consumers struggling to cope with punishing food price inflation over the past few months.

The UK's biggest supermarket chain Tesco has reported a plunge in profits but sales would rise 5.3 per cent to £2.03 billion in the year to February 2023.

Sainsbury's insisted that it does not pass on any inflation costs in its supply chain to customers.

Rhian Bartlett, commercial director for food at Sainsbury's, told the Economic and Trade Committee: 'We are well aware of the effect on our colleagues' costs of living and understand how troubled it is for them all at the moment.