The cost of living crisis will worsen before it gets better, warns Sainsbury boss if he doubles price cuts
- Sainsbury CEO said customers are waiting for “the hardest times”
- The supermarket is spending £ 500 million to reduce the cost of essential goods
- Other major grocers promise to focus on making the weekly store accessible
Sainsbury boss Simon Roberts has warned that the cost of living crisis will worsen before it gets better.
The CEO said customers have faced “the hardest times”, adding: “The effects of this will last longer than I’m sure most people expected a few months ago.
“Prices for food, fuel, fertilizers and labor have risen. We see a significant impact on costs and they will not go away tomorrow.
Helping Hand: Sainsbury’s invests £ 500 million to reduce the cost of essential goods including milk, eggs, meat, fish, fruit and vegetables
“Households across the country are facing real challenges. It’s difficult for customers and for households trying to manage their budget. ”
His warning came as Sainsbury’s doubled on price cuts.
The grocer reaps £ 500 million to reduce the cost of basic necessities including milk, eggs, meat, fish, fruit and vegetables. Roberts said: “Customers watch everything they spend.
“We have to work hard to make sure we keep as much of the customer exposure as possible.”
But he said factors, including rising staff costs, fuel, fertilizer and production, “take time to work out.”
His comments came a week after former Marks & Spencer boss Steve Rowe warned that buyers are holding back spending this fall in response to declining cost of living.
Other major grocers have promised to focus on making the weekly store accessible to families struggling with rising inflation and electricity bills.
Asda has spent £ 90 million on expanding Just Essentials and blocking prices on more than 100 of its best-selling products by the end of the year.
Over the past month, Tesco has added 100 products to its range of low daily prices, while expanding prices on Aldi to compete with the German discounter. Last week, Kantar said food prices were rising at the fastest pace in 13 years, jumping 7 percent last year.
As a sign that customers are looking for deals, Aldi and Lidl were the only grocers to increase sales in the three months to May 15 – by 5.8% and 6% respectively.
With 14.8% of the market, Sainsbury’s is in second place after Tesco – although together Lidl and Aldi beat it with a record 15.9.
Pressure on consumers will only intensify after the regulator Ofgem warned that average electricity bills in the fall will rise by another 800 pounds to 2,800 pounds.
Roberts said: “The most important thing that customers are telling us now is about the cost of living.
“Everything we do is a relentless attempt to get our prices in the best place we can.”
The cost of living will deteriorate, warns Sainsbury boss Simon Roberts
Source link The cost of living will deteriorate, warns Sainsbury boss Simon Roberts