threat of new entrants supermarket industry

Separately on Tuesday, Bank of England policymaker Swati Dhingra said there was little evidence of companies failing to pass on lower producer prices so far.Ī man shops next to Clubcard price branding inside a branch of a Tesco Extra Supermarket in London, Britain, February 10, 2022. The British Retail Consortium, which represents the major supermarkets, has said there is usually a three to nine months lag for falls in wholesale prices to be reflected in retail prices, with the more complex the supply chain the longer the lag. Rhian Bartlett, Sainsbury's commercial director, said her firm made less than 3 pence in every pound customers' spend, while Asda's chief commercial director Kris Comerford said a 25% slump in 2022 profit wasn't consistent with profiteering. 'We make 4 pence in every pound which I don't think is any example of profiteering,' Tesco commercial director Gordon Gafa said. Trade unions and politicians have accused the supermarkets of 'greedflation', saying they've been too slow in passing on to consumers falls in global commodity prices.Įxecutives from market leader Tesco (TSCO.L), Sainsbury's (SBRY.L), Asda and Morrisons, appearing in front of the lower house of parliament's business and trade committee, rejected this charge, saying their profits fell last year. Soaring food prices have contributed to the biggest squeeze on living standards in Britain since records began in the 1950s, and prompted questions about who is responsible. Over a longer time frame - since late 2021 - only food prices in Germany have risen by more. LONDON, June 27 (Reuters) - British supermarket executives rejected allegations they were profiteering through a cost of living crisis on Tuesday, telling lawmakers they had taken a hit to profit by not passing onto consumers the full force of pricing pressures they face.įood prices started rising well over a year ago, as Russia's invasion of Ukraine compounded pandemic-related tensions in supply chains.īritain had the highest rate of food price inflation in Western Europe during the 12 months to May at 18.7%, according to official data. Food market fiercely competitive, say supermarkets.

UK food price inflation was 18.7% in May.

Threat of new entrants supermarket industry