Sainsbury’s boss warns FOOD inflation is starting to ease but high labor costs will prevent prices from falling back to their low levels.
Supermarkets have been accused of “greedy inflation” amid claims they are using high food prices to boost profits.
But Simon Roberts, chief executive of Sainsbury’s, refused and said profits had fallen due to efforts to lower prices for shoppers.
He added that grocers currently make less than 3 cents per pound.
“Food inflation is starting to ease and we are committed to passing the savings on to our customers,” Mr. Roberts said.
Sainsbury’s said it had discounted 120 items, including bread, butter, milk, pasta, chicken and toilet paper.
But Mr. Roberts acknowledged that these are the items with the strongest price increase in the past year.
The UK’s second-largest supermarket has restarted a range of more affordable grocers called Stamford Street, an Aldi Price Match promotion and discount for Nectar members.
Grocery sellers say their 100 best-selling items are cheaper than they were three months ago, despite industry-wide inflation.
Mr Roberts’ efforts to make Sainsbury’s more competitive have paid off with a 11% increase in food sales in the last quarter.
Even so, the retailer did not raise its profit target, disappointing some investors.
The official food inflation figure fell from 19.1% to 18.4% in May.
But prices are still significantly higher than they were in early 2022, with bread and butter being 20% more expensive.
Mr. Roberts said that while the cost of shipping, handling and raw materials has started to decrease, labor costs have increased by 10% and will not decrease.
“Prices are not going to go back to the way they were because the cost of producing food has clearly gone up compared to a year or two ago,” he added.
FACEBOOK owner Mark Zuckerberg has dealt the first blow in a showdown with rival mogul Elon Musk after unveiling a new app for rival Twitter.
The Meta version, called Themes, is launching tomorrow and can be pre-ordered and linked to users’ existing Instagram accounts.
Zuckerberg’s Meta, which owns Facebook and Instagram, has told industry executives it wants to launch a platform that “runs well.”
The comment is clearly a blow to Mr Musk, who has made a series of abrupt changes since buying Twitter for £34 billion, including limiting the number of posts users can post. see.
Mr. Musk has stated that the social networking site is almost out of cash.
In a strange move, the two billionaires agreed to a duel.
Musk has said the bout could take place in Las Vegas or even the Colosseum in Rome, where gladiators used to fight to the death.
Both men recently posted photos of their extreme training regimens.
OFWAT: THAMES IN A HOLE
The head of the water regulator told MPs yesterday that Thames Water would need “a substantial amount of money” to get its finances in order.
Ofwat boss David Black told the House of Lords committee the watchdog should have stepped in to prevent Thames Water’s owner from piling up £14bn of debt in 2006.
However, he said that during that time, regulators took a “hands-on” approach and did not have the authority to do so.
Ofwat can now block dividends if a utility is deemed financially stretched.
Thames Water is in talks to raise £1 billion, but Mr Black admits its existing investors may not want to put in more money.
The government is exploring a special regulator for Thames Water, which means putting it under state control.
Mr Black said he “didn’t see the same level of problem” elsewhere in the sector.
DIET GUZZLED COMPANY
HEALTHY Foodhak has purchased a celebrity diet company that has worked with Adele, Mel C, Michael McIntyre and Denise Van Outen.
Balance Box was founded by dietitian Jennifer Irvine 20 years ago and has worked with celebrities and sports stars before struggling to recover from the pandemic.
Foodhak uses AI to mine clinical health trials and personalize medically beneficial meal plans.
ONLY 18 companies have listed on the London Stock Exchange in 2023, raising £650m, compared with 47 in 2021, raising £9.4bn.
We Soda scrapped £6bn listing in London, blaming lack of investor interest
GORMLEY IN HEALTHY SAVE
NAKED WINES turned to its founder for a second time to revive its fortunes after sales plummeted.
Online officials say that Rowan Gormley, who founded the company in 2008, will return as chairman, taking over from David Stead, who is leaving immediately. Mr. Gormley was brought back as a board adviser in 2022 after a series of profit warnings.
Naked Wines yesterday disappointed the City by delaying the release of full-year results and saying sales were below expectations.
Businesses say to deliver profitable growth, they need to focus on acquiring more customers faster.
Shares in Naked Wines fell 10% to 89p, valuing the company at just £67m.
INEOS IS HOPE TO CLEAN
INEOS boss Sir Jim Ratcliffe is hoping to boost sales with a range of laundry products.
The industrial magnate’s interests include chemicals, oil fields, French football club Nice, shares in the Formula 1 team Mercedes-AMG Petronas and utility vehicles Grenadier.
Now he is setting his sights on cleaning the house.
Ineos Hygienics, which launched hand sanitizer during the pandemic, is competing with companies like Unilever and Proctor & Gamble with 16 household products with “active scents” that are said to improve sleep sleep and help focus at work.
Yesterday, Sir Jim criticized the competition watchdog’s decision to block Ineos’ £780 million acquisition of cement company SIKA.
Sir Jim said: “This is another example of how a backstopped deal would benefit the UK.
“Added by the unexpected levy in the North Sea and continued high energy costs, we see the government driving business out of the UK.”