Sainsbury’s CEO: Grocery inflation less severe than expected so far

The chief executive of Sainsbury’s, Simon Roberts, stated that grocery inflation in the UK has not been as bad as feared so far, though pressure remains in the system. Roberts noted it is still early in the year and there is uncertainty about where inflation will go, but suggested it could come in well below the Food and Drink Federation’s initial prediction of at least 9% by December. Shop price inflation remained unchanged in June at 1.2% year on year, according to the British Retail Consortium. Sainsbury’s reported a 2.7% rise in sales to £9.1bn in the three months to 20 June, with grocery sales up 3.6% as the chain matched prices with Aldi on hundreds of products. Sales at Argos fell 0.5% despite a 2.2% increase in product volume, due to discounting and a shift toward lower-priced items amid cautious consumer sentiment. Roberts said customers are being much more cautious on non-food purchases and called on the likely next prime minister, Andy Burnham, to introduce policies that support confidence and optimism among shoppers.

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Sources: The Guardian