Simon Roberts says that Sainsbury's is “absolutely focused on food” when it comes to pricing. Photo: HENRY NICHOLLS/REUTERS
Drivers should Boss Sainsbury's offered to accept higher petrol prices to keep food costs down.
Simon Roberts, chief executive of the UK's second largest supermarket , said that Sainsbury's “was completely focused on food first and foremost” when it came to pricing.
Mr Roberts said: “That means any benefit that we see every other part of our business, whether it's in Argos [which is owned by Sainsbury's], whether it's in the bank, whether it's fuel, being invested back into the food business to keep our food prices as low as possible.”
This followed Monday criticism from ministers that retailers were using motorists as “cash cows” after an investigation by the monopoly watchdog found that supermarkets, including Sainsbury's, inflate prices for drivers at gas stations.
Morrisons responded by saying that “a slight increase in fuel profitability” was key to her ability to invest in prices in her stores.
Gasoline and diesel prices
Mr. Roberts said Sainsbury's is making less profit overall and its margins are declining.
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He said that Sainsbury's is “really competitive on fuel” and that the supermarket has not set a margin target on how much profit it makes from fuel, instead adopting a “passive” approach based on competitor prices.
The criticism of fuel prices followed growing pressure from ministers to target help lower prices for customers.
Sainsbury's said on Tuesday that food inflation has started to fall, leading shoppers to shop more. Food sales rose 11 percent in the 16 weeks to June 24.
Mr Roberts said food inflation at Sainsbury's is now about half of the total reported by the National statistics for food and beverages, which was 18.4% in June.
He said that inflation is coming down. fastest in areas, including fresh produce.
How food prices skyrocketed
This came after a flurry of price cut announcements in supermarkets. Earlier this week, Sainsbury's cut the price of a roll of its own brand of toilet paper by 11 percent. Last week, the company pushed through a price cut for gluten-free pasta.
Supermarkets have faced increasing price scrutiny in recent months, and last week their bosses were called to appear before MPs to answer questions about potential speculation and explain what they are doing to help ease the pressure on households.
However, they did it. stated that this price cut is passed on to buyers as quickly as possible. Sainsbury's Rhian Bartlett said last week that milk, butter and cheese are among the products whose prices should come down soon.
Mr Roberts said on Tuesday that packaged goods will become cheaper more slowly than fresh food.
Sainsbury's mentioned sales were also supported by the launch of the Nectar Prices loyalty scheme, where customers sign up to receive lower prices. More than a million new customers have signed up for its Nectar digital scheme, it says.
Sainsbury's said it is on track to hit its previous profit forecasts of £640m to £700m for the year until March 2024. . The company recorded an underlying pre-tax profit of £690m last year.
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