Sainsbury’s expects challenging run-up to Christmas as households feel squeeze
Supermarket urges government not to ‘further aggravate’ pressure on costs for businesses in next week’s budget Sainsbury’s has warned of a “pretty challenging” market in the run-up
By The Guardian
Sainsbury’s has warned of a “pretty challenging” period for shoppers and food producers in the run-up to Christmas.
Chief executive Simon Roberts said many households were “finding it tough” as consumer budgets remained under pressure.
He also urged the Government not to add to business costs in next week’s Budget.
Roberts said it was important that ministers did not repeat previous increases to business rates or employers’ National Insurance contributions, which he said had placed pressure on retailers and other employers.
“That’s been really hard,” he said.
The comments came as Sainsbury’s reported slower sales growth but raised its full-year profit outlook. Grocery sales increased during the first half of its financial year, while shoppers bought greater volumes as food price inflation eased.
Roberts said the retailer was focused on helping customers manage their budgets, but warned that costs across the food supply chain remained a concern.
Pressure on fertiliser and energy prices is expected to add to challenges for producers and retailers over the autumn and winter.
The Sainsbury’s boss said the Government should avoid further taxes or regulatory costs that could increase prices or make it more expensive to employ staff.
He also called for changes to the business rates system and measures to reduce employment costs ahead of the Budget.